Bitcoin price has been rallying on Tuesday, but that’s only the beginning, according to a market analyst. His technical analysis suggests that the cryptocurrency might update the 12-month high by June.
Bitcoin Price Rally Will Get Steeper
Bitcoin almost touched $7,500 earlier today, updating the highest level since March 12. On that day, the crypto market crashed, with Bitcoin breaking below $4,000 to the lowest level in a year. The largest cryptocurrency is about to double its value from March low, but it can go further than that.
A crypto trader shared his view on Twitter, predicting that Bitcoin price might touch $13,800 by the end of June. However, he stressed that it’s impossible to accurately foresee BTC’s price, which is true.
It's never possible to make a 100% accurate prediction of how price will move in the future
But if I had to visualize what I'd think is most likely in to June, this is it pic.twitter.com/ceUiaFrU8r
— //Bitcoin 𝕵ack 🐐 (@BTC_JackSparrow) April 6, 2020
According to his technical analysis, Bitcoin will initially consolidate above $9,100 by the end of this month. While this is plausible, the cryptocurrency has to go through a small test in the coming hours, as it has just formed a double top. The latter is a bearish pattern that often precedes a trend reversal.
If the leading cryptoasset manages to break above $7,500, it’s fair to say that $9,000 will be the next strong resistance test. At the beginning of March, Bitcoin price started to suddenly crash specifically from that level, following the stock market collapse amid the coronavirus panic.
There Are Enough Fundamentals to Support Bullish Stance
Besides the bullish reasons explained by technical analysis, Bitcoin has even more support from the fundamental side. First, stock markets returned to growth amid hopes that the pandemic has just reached a peak in Europe, as Italy, Spain and the UK reported fewer new cases.
Also, the Fed has pumped trillions into the foreign exchange market, buying government and corporate bonds to support the economy. This excess of cash will be reflected in the BTC price sooner or later.
Finally, an aggressive bullish rally could trigger the FOMO effect, which could send Bitcoin to new 12-month highs.
Do you think Bitcoin has the potential to update the 12-month peak? Share your thoughts in the comments section!
Image via Shutterstock, Twitter:@BTC_JackSparrow , BTC/USD Charts by TradingView