Bitcoin Candle Formation May Point to $50,000 Possibility in Coming Years
Bitcoin and the aggregated crypto markets have been able to extend the upwards momentum that they have incurred over the past several days, which has allowed BTC to put some distance between its current prices and its recent lows of $9,100.
Importantly, one analyst is now explaining that Bitcoin is forming its fourth monthly “Doji candle,” which is a sign of uncertainty; historically, the formation of several Doji candles precedes massive bull runs.
Bitcoin Climbs to $10,600 as Buyers Flex Their Strength
At the time of writing, Bitcoin is trading up nearly 6% at its current price of $10,620, which is up significantly from its 24-hour lows of below $10,000.
Over the past seven days, BTC has incurred significant volatility that has led to the formation of a wide trading range, with weekly lows of $9,100 and highs around its current price.
The key level that should be watched in the near-term is $11,000, as this is the price at which the cryptocurrency was rejected at a couple weeks ago when BTC rapidly surged to this price level before reeling all the way down to the lower-$9,000 region.
Although it remains unclear as to whether or not Bitcoin will face a similar rejection as it nears $11,000, Raoul Pal, an economist and popular figure within the crypto community, recently noted that he believes BTC is a “great macro asset” presently.
“Bitcoin is a rocket ship on the launch pad…very much lining up with the big macro picture…. It appears bitcoin is a great macro asset too right now,” he explained.
$BTC #Bitcoin is a rocket ship on the launch pad…very much lining up with the big macro picture…. It appears bitcoin is a great macro asset too right now pic.twitter.com/00W7HgmXIL
— Raoul Pal (@RaoulGMI) August 2, 2019
Could BTC Be Gearing Up for a Parabolic Movement to $50,000?
Assuming that BTC’s macro-picture does remain strong, it may currently be laying the groundwork for a movement to fresh all-time-highs of $50,000.
Moon Overlord, a popular cryptocurrency analyst on Twitter, discussed this in a recent tweet, referring to a chart that elucidates the similarities seen between BTC’s current price action and that seen in years past.
“There’s been 3 Doji monthly candles along the median long term regression line after bitcoin broke above it. After each one #bitcoin has tapped the top band. This month we’re forming our potential 4th doji / (uncertainty candle). A run to the top band would put $BTC at $50,000+,” he said.
There's been 3 Doji monthly candles along the median long term regression line after bitcoin broke above it
After each one #bitcoin has tapped the top band
This month we're forming our potential 4th doji / (uncertainty candle)
A run to the top band would put $BTC at $50,000+ pic.twitter.com/eFDt8U1FFx
— Moon Overlord (@MoonOverlord) August 2, 2019
As Bitcoin continues to react to its current position right below the key $11,000 level, it is highly likely that analysts and investors will soon gain greater insight into which direction the markets are heading next.
Featured image from Shutterstock.
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Cole Petersen, Khareem Sudlow