Bloody Monday? I think not. In the past hour, Bitcoin (BTC) has spiked, gaining almost 3% within a few minutes’ time. As of the time of writing this, the cryptocurrency sits at $11,900, the highest the asset has traded at in a number of days.
This strong surge upwards, which didn’t occur prior to the close of the weekly candle and CME weekend open as Bitcoin has done, comes after days of lower highs and higher lows, suggesting that this small yet important spike is a breakout. Take a look at the chart below for a better look.
What’s Next for Bitcoin?
So, what exactly is next?
Well, according to analysts, a bullish confirmation would be Bitcoin closing a key short-term candle, like the four-hour or 12-hour, above the $11,700 range.
As reported by NewsBTC previously, Dave The Wave believes that if BTC closes above $11,600 on the daily, the asset could continue its parabolic rise. Such a move would mark the cryptocurrency breaking past a declining trend line that has acted as resistance since last month’s blow-off top at $13,800.
Should the parabolic rise continue, Bitcoin could hit $14,000 by the middle of July, which is just over a mere week away.
Considering that this surge took place within a matter of a few minutes, implying manipulation by whales, this market could retrace these gains. Thus, investors may need to stay on their toes for the time being.
Indeed, other analysts, including Tone Vays, suggest that considering that Bitcoin has yet to break above $12,000, it isn’t 100% bullish. This is for good reason: $12,000 has acted as a minor resistance level over the past few weeks.
Some have been a bit more optimistic, however. Analyst Benjamin Blunts, who famously called that Bitcoin would bottom around $3,500 in mid-2018, explains that this breakout will lead to BTC flirting with its year-to-date highs in the mid-$13,000s. That would represent a 13% growth from current levels.
Interestingly, after said rise, Benjamin is expecting a large drawdown to $9,000, which some suggest would be price action they would like to see prior to a surge to fresh all-time highs.
the chop is real here, max pain for bears and bulls would be a breakout into a double top.
in all seriousness, btc probably follows eth here and breaks up first pic.twitter.com/wFQYGWK3Cz
— 🍄🌲BenjaminBlunts🌲🍄 (@SmartContracter) July 7, 2019
Crypto’s Fundamentals Still Strong
While opinions on Bitcoin’s expected short-term price action vary, it is important to note that the cryptocurrency industry has continued to see its fundamental value proposition grow.
Out of an array of positive fundamental developments, what countless cryptocurrency proponents are focusing on is fiscal policy.
As reported by NewsBTC, the Federal Reserve recently revealed that it is leaning to cut rates again.
Featured Image from Shutterstock. Chart Courtesy of Tradingview.com