There is a 75 percent chance that Bitcoin will break out of its ongoing consolidation pattern bullish.
According to the independent analyst Vince Prince, the benchmark cryptocurrency is making „marginal“ upward movements in a structure of the Ascending Channel.
That leaves her with two possible outcomes. First, Bitcoin is consolidating within the channel as it breaks below the „ascending trendline“; second, it stays above the trendline and later breaks out of the range entirely.
Prince endorsed the second result. It denotes every price turning point of the crypto currency with an alphabet. Hence, the term “A” represents the first withdrawal from resistance in the Ascending Channel. The next withdrawal from the channel support is “B” while the third and most recent upward withdrawal is from “C”.
In the middle of what is known as the ABC wave, he has placed a 100-hour moving average that supports the sustained upward movement.
The Bitcoin Bull Case Explained
Due to the overall technical structure, BTC / USD has a higher chance of breaking out of the channel area, according to Prince. If so, the pair would extend its upward move toward what is known as „C-wave elongation“ near $ 11,695.
„[There’s] a 75 percent chance that Bitcoin will manage to consolidate further forward between the channel and the trendline,“ writes Prince. „[Then] it would go on and form the C-wave extension.“
The bullish forecast comes a week after Bitcoin Code turned down the $ 11,750 resistance. Traders became increasingly bullish after Square, a global payments platform led by Twitter CEO Jack Dorsey, put $ 50 million BTC on its balance sheets.
That sparked speculation among institutions about the growing importance of Bitcoin as a store of value. Lately, many wealth management firms and independent businesses on Wall Street have sold their cash reserves to get a stake in Bitcoin . The churn stems from their fears that the US dollar could depreciate in the future.
Prince acknowledges these fundamentals in his bullish thesis. The analyst comments that BTC / USD could stay above the ascending trend line because it is from there that „smart money picks up the trading of inexperienced investors“.
Konstantin Anissimov, executive director of the crypto exchange CEX.IO, expects the prices of Bitcoin – as well as Ethereum – to explode in the coming meetings.
„Not only are listed companies including BTC on their balance sheets, but CFTC chairman Heath Tarbert was also“ impressed „by the progress that ETH has made in becoming the“ computer of the world „, according to Anissimov. „Such an endorsement is quite significant as it shows that the mass adoption of these digital assets is happening right now.“
Bitcoin and Ethereum will march to new highs for the year, he believes.