Why An Analyst Thinks Bitcoin Is “OK” as Long as This Level Holds
- Bitcoin has undergone a strong correction over the past few days.
- The cryptocurrency, after peaking near $12,100 last week, reached a low of $9,800 over the past few days.
- Bitcoin has since undergone a bounce, with the coin now trading at $10,400 as of this article’s writing.
- While there are bears calling for a bear market, a historically accurate trader says Bitcoin remains in a good spot.
- The caveat is that BTC must hold $9,000, or else it may risk a reversion to the lows.
Bitcoin Remains in a Bullish State as Long as $9,000 Holds: Analyst
An analyst believes that as long as Bitcoin remains above $9,000, the macro bull trend will persist.
He shared the chart below on September 7th to illustrate his opinion. It shows that BTC’s recent price action looks like the performance of the Nasdaq after the 2008 Great Recession.
The comparison suggests that as long as Bitcoin holds the $9,000s, it will be at a similar point to where Nasdaq was at prior to the decade-long rally that has persisted until now.
Should Bitcoin follow the Nasdaq’s trajectory, it will need to hold here, then it will embark on a multi-month rally that will likely bring it to new all-time highs.
Chart of BTC's price action over the past few months with a compartive analysis to another asset by crypto trader "il Capo of Crypto" (CryptoCapo_ on Twitter). Chart from TradingView.com
The analyst that made this observation is one that has historically been accurate with his predictions.
At the start of the year, the trader suggested that Bitcoin would fall to the $3,000s and XRP would reach $0.11-0.13 in 2020. At the time, this prediction was seen as too bearish for many, with many believing that the price targets were pure bearish fantasy.
The trader was proven correct months later, though, when Bitcoin underwent that serious correction during the month of March. Both predictions were fulfilled during that drop.
The Long-Term Trend Remains Bullish
The long-term trend of Bitcoin remains bullish despite recent price weakness.
Mike McGlone, a senior commodity analyst at Bloomberg Intelligence and a closer follower the crypto market, commented in a research report on crypto:
“Bitcoin is mirroring the 2016 return to its previous peak. That was the last time supply was halved, and the third year after a significant peak. Our graphic depicts Bitcoin marking time for a third year following the parabolic 2017 rally… Fast forward four years and the second year after the almost 75% decline in 2018, Bitcoin will approach the record high of about $20,000 this year if it follows 2016’s trend.”
Others, including Dan Tapiero of DTAP Capital, Raoul Pal, and Arthur Hayes, say that the macroeconomic situation is primed to send Bitcoin higher.
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Why An Analyst Thinks Bitcoin Is "OK" as Long as This Level Holds