Crypto traders now have the fractal they yearn for after a long moribund period that kept Bitcoin hovering around $10K. Even though it isn’t a plus, it gives analysts a better sight in predicting short term possible occurrence in the market.
In the last 24 hours, the market dunked to its lowest in about three months as Bitcoin crossed $9,500 to $9,400, allowing billions get expunged from the market.
After climbing up slightly to $10,250 yesterday, Bitcoin slopped down by about $700 within an hour.
The market situation was addressed by a reputed crypto analysts, who claims to have unbiased opinion, Crypto Hamster, saying it is a Déjà vu.
— CryptoHamster (@CryptoHamsterIO) August 29, 2019
Bitcoin Huge Pull-Back May Mean a Pump in September
Nevertheless, the whole scenario is being painted with another outlook on Tradingview. After comparing two previous identical trends displayed by Bitcoin in the past, trader ‘TradingShot’ on Tradingview averred that the present consolidation, if history repeats itself, would lead us to another massive pump in September.
In January and September 2016, Bitcoin displayed the same consolidation around 1D MA50 with the present trend, and this happened at the start of 2016 Bull Market.
Image Credit: TradingView
TradingShot affirmed that the three scenarios went through similar price action which began with a slightly aggressive parabolic run. The slight pump ended with a cross beneath 1D MA50 and a triangle patterned consolidation around MA50 followed.
While a downward MA50 curved got initiated, the pullback relied on 1D MA200 as a solid support. A 16% decline from the MA50 top in both previous scenario ended the pull-back and Bitcoin arrived the final bottom.
TradingShot afterward declared that if the same principle play out this time, it is clear that we are very close or already at the bottom of the current consolidation and September would be a boom period.
“Interestingly enough the Gaussian Channel turns red right after the bottom also signalling the end of the consolidation”, TradingShot stated.
Image Credit: TradingView
Michael Novogratz Believes Bitcoin Is Headed For $20,000
During an interview with Bloomberg yesterday, the chief executive of Galaxy Digital, Michael Novogratz, aired his belief that Bitcoin is headed for its previous all-time high value.
Novogratz said the fact a number of institutions are beginning to embrace cryptocurrency will help drive up Bitcoin’s price.
“I’m not selling the next time we hit $14,000. The second time we reach that level, [there may be] a move to $20,000. I don’t expect this to happen in the next few weeks: I don’t expect it to the middle or the end of the fourth quarter. But the next wave will come when the institutions — the state of X, Texas Teachers Union, and those guys — come in, and then you will see Bitcoin hit $20,000 and higher,” Novogratz stated.