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Here’s Why an Analyst Thinks Bitcoin Will Hit $12,000 Next Week

Nick Chong

Nick Chong | Aug 29, 2020 | 01:53

bitcoin price bullish featured image Bitcoin Price

Here’s Why an Analyst Thinks Bitcoin Will Hit $12,000 Next Week

Nick Chong

Nick Chong | Aug 29, 2020 | 01:53


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  • Bitcoin has pressed higher after the 3-4% correction on Thursday.
  • As of this article’s writing, the asset trades for approximately $11,500.
  • While this is above a notable price point already, analysts think that Bitcoin will extend its gains in the near future.
  • One trader noted that there are clear signs that BTC will soon trade back above $12,000.
  • This bullish price action is somewhat dependent on the value of the U.S. dollar.

Bitcoin Could Hit $12,000 in the Near Future: Here’s Why

Bitcoin has pressed higher in the past 24 hours, moving to $11,500 as of this article’s writing. The asset topped around $11,550 in this near-term rally.

The asset is poised to move higher in the coming days towards $12,000, one trader thinks. He cited three trends formed on Bitcoin’s four-hour chart: the creation of a divergence between the price action and the RSI, an “exhausted” supply region around $11,000-11,300, and the price currently attempting to claim the 200 simple moving average as support.

These three technical signs suggest that the price of Bitcoin is prepared to move higher, likely towards the year-to-date highs near $12,400 once again.

“My $BTC plan is still intact. Long if price reclaim 11.5k: – 4H bullish divergence confirmed. – Exhausted supply. – Price fighting to reclaim 200MA as support. I think we’ll see 12k next week.”

Image

Chart of BTC's price action over the past few weeks with analysis by crypto trader "Inmortal Technique" (@Inmortalcrypto on Twitter). Chart from TradingView.com

His optimism comes as analysts have been bullish about the fundamentals of the leading cryptocurrency.

Raoul Pal, CEO of Real Vision, thinks Bitcoin and gold remain in a good spot:

“Most people don’t understand the latter but is simply put, Powell has shown that there is ZERO tolerance for deflation so they will do ANYTHING to stop it, and that is good for the two hardest assets – Gold and Bitcoin. Powell WANTS inflation. I don’t think he gets true demand push inflation but he will get fiat devaluation, in conjunction with the other central banks all on the same mission.”

All Eyes on the Dollar

The U.S. dollar’s price action is likely to dictate the price of Bitcoin in the near future, though, especially because the currency controls gold.

The dollar is in a weird space due to recent comments from the Federal Reserve’s chairman Jerome Powell. He said that he may let inflation drift higher than the 2% target it has been at for years.

Featured Image from Shutterstock
Price tags: xbtusd, btcusd, btcusdt
Charts from TradingView.com
Here's Why an Analyst Thinks Bitcoin Will Hit $12,000 Next Week

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