Since December last year, Bitcoin has unquestionably blown up higher and higher. As we talk now, the dominant altcoin is up by more than 35% since its bottom of $6,600 (Dec 17, 2019).
However, several analysts have come out to say that this amazing rally will push back Bitcoin to set a new record higher than that of December, 2017 when it traded for more than $20,000 (BTC crypto-bubble). One prominent cryptocurrency trader who is also a blockchain advocate, suggested 3 reasons why he believes that the price of Bitcoin is generally buoyant on a macro basis.
A good mate asked for my take on $BTC— Satoshi Wolf (@SatoshiWolf) January 22, 2020
The monthly chart says it all:
1. Price decline + volume decline = Bullish
2. Volume backed bounce off strong support = Bullish
3. Halving = Bullish
Until something changes I am Bullish on #Bitcoin and will do everything to get more. pic.twitter.com/XGWxLUpCJF
According to recent technical analysis by a senior cryptocurrency traders, known as Satoshi Wolf, BTC’s 1-month candle chart over the last consecutive 3 years, around 3 upbeat technical analysis and central indicators can be observed:
At the outset, the recent price breakdown that the world’s leading cryptocurrency has recorded from $14k to a bottom of around $6,400 has been seen by diminishing volume, and the trader says that it is actually “bullish.” Certainly, diminishing volumes in a downward tendency would show that the merchants are bit by bit losing the game and control as well.
In addition, Bitcoin in December, 2019, definitely moved off the major $6,400 macro support level, that has for long been a level of paramount rank since the first quarter (Q1) of 2018, in December on positive trading volumes.
And last but not least, the block reward reduction for BTC, that will have to reduce the rate of inflation of the original digital currency by almost half, is imminent (May 2020). Particularly, this occasion has been anticipated and discovered to be connected with upsurges in the cryptocurrency market.
Therefore, the combination of these factors proposes that Bitcoin may in the near future (a few months from now) hit and exceed the $10,000 price level.