According to ThinkMarkets- a Forex and derivatives broker- Chief market analyst Naeem Aslam, the price of Bitcoin could surge to $6,500 very soon after breaching a key resistance level of $5,500 this week.
As had been speculated by a number of commentators, Bitcoin has surged to a six month high the week after the Easter weekend, after having struggled to break through key resistance levels for much of 2018.
The analyst believes that there are several factors behind the latest BTC rally which include; growing optimism that the NASDAQ is growing more confident about Bitcoin futures. He also believes that another factor adding to this one is the steady formation of a bullish trend with speculative shorts that keep pushing the price higher and higher.
“Technicals are fully supportive and the bulls are pushing the markets higher based on that. It’s likely that Bitcoin’s price may move towards $6,000 or even touch $6,500. We have NASDAQ, which is about to get serious about Bitcoin futures. Not to mention the speculative short positions, which are going to get squeezed out very soon (as per the CFTC data)”
Another Rally in the Making
Aslam also indicated that another rally was slowly in the making. He alluded to the conditions that led to Bitcoin’s past rebounds as evidence that another could be expected. He said that the current patterns were similar to those that had occurred during previous rallies. He noted that Bitcoin crossed its 200-week moving average in March which is a significant technical indicator.
In short Aslam has it that technical indicators are slowly building a case for a Bitcoin rally.
$100,000 per Unit Realistic
Based on a mathematical calculation involving approximate percentage projection of Bitcoin’s price during the last Bull Run, the analyst claims that $100,000 a unit is not unrealistic for Bitcoin. Naeem explained the basis of his assessment with a flashback to 2011.
“Back in 2011, the price plunged nearly 93% and in 2014, it dropped 84%. As for the most recent price crash, we have experienced the smallest price crash — 79% from its recent high. The most important part is that the price has started to rally back up.
Despite all this, not everyone is convinced that the crypto winter is behind us. Certified financial planner and investment manager Peter Mallouk thinks crypto bulls are deluding themselves if they believe that the current rally would last. Mallouk has a history of giving damning outlooks on Bitcoin. In December he referred to Bitcoin as a “dead man walking”.
Bitcoin despite struggling throughout 2018 is showing some momentum this year. Skeptics that tried to dismiss the early April Bull run are now struggling to explain the latest run. This can only mean that an assessment such as Naeem’s can no longer be dismissed as wishful.
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