Bitcoin Will Hit $13,000 Very Soon
Bitcoin is having a solid rally this year, there is no doubt about that. The combination of technical conditions, growing acceptance globally, and an upcoming halving are supporting the world’s leading cryptocurrency. Over the last few weeks the coin has topped the $8,000 level and entered a consolidation that bears all the hallmarks of a continuation pattern. I’m going to go out and say it. Simply based on the technical aspect it looks very likely Bitcoin will reach $13,000 and possibly as quickly as the next four weeks.
The weekly chart is what has me really excited. The chart shows a solid move up from lows set earlier this year. Over the past three months the momentum within the market has accelerated, creating a series of long green candles. To put the candles in perspective, they are the largest candles since early in 2018 and show a high degree of market engagement with price action. The last four weeks, especially now that this week’s candle is nearly formed, look like a nice little flag pattern within a rising up trend. If so, if confirmed, this pattern could easily lead to a quick $5,000 in price gains.
The risk of course is that resistance at the current high will keep prices from moving higher. This resistance is near $9,000 and may be quite strong. The mitigating factor is the indicators. The indicators are consistent with a consolidation within uptrend but still very bullish. MACD in particular is showing an extreme peak coincident with the latest high in prices. This is a sign of market strength that will result in a retest of the high and probably a new high to boot. Once resistance is broken, however, I think there will be another inflow of cash to the market and that will drive price up to the $13,000 level.
The daily chart is equally bullish. This chart shows an asset recovering from a price correction within an uptrend. Current price action is moving higher, in line with a shift in momentum, that is likely to result in a test of resistance if not a move to new highs. Stochastic has already fired a bullish entry signal so upward momentum is expected. MACD has not yet confirmed the move but, if it does, and it coincides with a breakout, a substantial move higher is likely to follow.
The reason is simple. Bitcoin, at the core of the issue, is a technical asset. It’s value is based on what the market thinks it’s worth and right now that worth is on the rise. The charts look very good so this will attract new and more money to the market and that in turn will fulfil the self-fulfilling prophecy of technical analysis.