Story by: Nick Chong
After an 11% drop last week, Bitcoin (BTC) started to mount an extremely strong recovery on Sunday and Monday. Just earlier today, the cryptocurrency reached a local high of $9,150, trading 5% higher on the day.
Per Raoul Pal, a former Goldman Sachs executive, this move has allowed BTC to break out of “an inverse head and shoulders formation (with a very weak right shoulder, which makes it often more powerful.”
This move has also notably brought Bitcoin above the key 200-day simple moving average. While the price has yet to close above this key technical level, sitting around $9,000, this specific moving average has long been seen as analysts as an indicator of an asset’s long-term directionality.
With these bullish factors in mind, where do analysts say the leading cryptocurrency can go next?
What’s Next for Bitcoin?
“Overall, Bitcoin is exactly where [I] anticipated; slowly grinding up towards previous resistance… I’m very much of the opinion that Bitcoin will reach to at least $12,500 level before the halving.”
As to why $12,500 makes sense, he noted that that is the “top target” for a bullish inverse head and shoulders chart that is forming on a medium-term basis for Bitcoin.
This belief that the cryptocurrency will soon head over $10,000 has been echoed by other prominent traders and commentators.
Trader and industry advisor Josh Rager noted that BTC’s current monthly candle is looking good, adding that if January can close above $9,250, the price would “likely look to push up over $10,000 to re-test the point of control of the June to September 2019 price action.”
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