Bitcoin is currently up over 100% on the year, even after pulling back from hitting a high of $14,000, and going back down to $10,000, the price of BTC as I write this. Now that Bitcoin has pulled back and has been trading sideways for almost 2 months now, investors are wondering where BTC is heading next.
I believe that the price action has been quite bullish all year, and the uptrend will remain intact. We could hit $20,000 by the end of the year once we break out of this range of consolidation. Let’s start by looking at Bitcoin’s weekly chart from the last 2 years:
Bitcoin Weekly Chart From the Last 2 Years
If you are not familiar at looking at candlestick charts, each candlestick 1 week’s worth of price action. You can see how strong the trend we have been on since April when it broke out at $4200. We have been trending with the 9 MA (the yellow line) all year. You can see how during the run-up in 2017 to $20,000 it was trending in the EXACT same way.
The $9000 area has proven to be strong support in the last couple of months. If we view this from a probability standpoint, this latest pullback is likely just another buying opportunity. We were due for some consolidation after a 300%+ move from about $4000 to $14,000 in just 3 or so months. Despite the pullback, the uptrend appears to still be in tact, and it looks like the latest weekly candle could be making another higher low. If close above $10K with this wick I would view that as bullish.
BTC has Done it 4 Times Before
Remember this chart?
Bitcoin has returned to all-time highs 4 times before after declining 80%-95%. Will history repeat itself? Probably! So where does that mean it will likely head next? $20,000 (give or take), the all-time high from 2017. It won’t happen overnight, but it will likely get there at some point.
Bitcoin has some fundamental value, and this year its clear a lot of other people with money think so as well. There is a strong argument made by Pomp in this article the potential of BTC’s role as a hedge during an economic crisis, which will likely occur at some point in the upcoming years.
Regardless of what Bitcoin does, we at Bulls on CryptoStreet are momentum and trend traders. We don’t care which way the market is trending, because we have strategies for every market condition, and we focus on short term trends.
Bitcoin going back to $20,000 would present a lot of great long setups, and Bitcoin pulling back further would create a lot of great short-selling setups. We would definitely prefer for BTC to uptrend, as it would bring more opportunities and cash flow into altcoins! If you’re interested in learning more about our trading style, check out our Cryptostreet educational packages.