Can Bitcoin (BTC) break through above the resistance of $ 10,500, which has been unsuccessfully tested since September 2019? Bloomberg analyst Mike McGlone believes he can.
Two reasons for the growth of the BTC
A senior commodity strategist said Friday that Bitcoin will reach $ 13,000 in coming sessions. McGlone named two reasons to justify his bullish prediction:
- First— decreasing volatility of the asset.
- Secondis a technical model that promises a new strong breakthrough.
“Bitcoin is preparing for a breakout that will be limited to resistance at $13,217,000,”— notes McGlone.
A sharp drop in the volatility of Bitcoin reflects its maturation to the digital version of gold. ”
Regarding the technical pattern, analystnoted that bitcoin tends to have a symmetrical wedge (which looks like a triangle). At the same time, the 30-day cryptocurrency volatility exceeded the 200-day simple moving average.
On the chart that was publishedanalyst, shows two similar fractals from the past in which the price of Bitcoin increased exponentially after 30D volatility tested the 200-DMA. Meanwhile, the symmetrical wedge that followed the 150% rally further hinted at a continuation of the uptrend.
“The more contempt for bulls, the better, keeping the price raised for a consolidating situation”, — commented Mr. McGlone.
Forecast against current market movement
It's worth noting that the Bloomberg analyst's bullish forecast for Bitcoin came on a day when the cryptocurrency was extending its downward correction.
On Friday, the BTC/USD exchange rate fell to$9’076, down 7.30% from the one-week high. The drop came ahead of the expiration of billions of dollars worth of Bitcoin options on several crypto derivatives exchanges.
Observers expected rapid price movements, as bitcoin option traders try to influence spot markets in the direction of the strike price of their options.
Link to the derivatives market
However, analytical dataSkew shows that most call options have expiration prices of $10,000 and $11,000, while most put options are priced at $8,000.
“The highest volume for call options is at 10k and 9k,— tweeted Altcoin Psycho.
A likely scenario is bitcoin trading sideways. I think it will be so. ”
If the scenario predictedby an amateur Twitter analyst, Bitcoin is trading sideways and after options expiration with a settlement date for today. In general, this does not contradict the fact that Bitcoin will continue to remain in the wedge range identified by Bloomberg analyst McGlone in the coming sessions.
</p>Rate this publication
Read this:
Bloomberg named 3 factors that will ensure the growth of BTC to $ 20,000
Bloomberg: despite the fall, BTC will be able to rise above $ 10,000
Bloomberg signals the imminent transition of BTC to explosive growth
Halving and lower interest rates will ensure the growth of BTC in May
What factors will increase the price of BTC in the coming months?
Trader named factors that may affect the price of bitcoin during the week