- In March, few would have thought that Bitcoin would be where it is today.
- The coin has risen by over 200% since the lows in March – which shows that the crypto market is far from dead.
- When the lows were reached, some feared that crypto-currencies would not exist for long.
- One of these analysts predicted that the crypto-currency would test $10,000 again by May, just a few months after the crash.
- The chart pattern he used to predict this price action now indicates that Bitcoin has room for upward expansion.
- Another trader who predicted the rapid recovery of the Bitcoin price reflects this assessment.
Bitcoin has further upside potential: textbook chart pattern
When Bitcoin crashed to $3,500 on March 13th, few expected the coin to bounce back so quickly. In fact, there were many at the time who believed that the crypto currency was on its way to $1,000 and possibly below.
However, some held to their belief that Bitcoin would be rapidly reversed.
One of these analysts shared the chart below. He suspects that the crypto currency was traded in a so-called macro-accumulation pattern.
This wyckoff accumulation analysis suggested that the crypto currency would reach $10,000 in May or June and then correct. This is what happened.
The analysis also predicted that Bitcoin would continue to rise after its low in July. This has also happened.
Although the analysis was not entirely accurate in predicting that Bitcoin would be $14,000 to $15,000 higher in its second period, it was accurate in predicting the timing and general direction of the crypto currency.
The same analysis now suggests that Bitcoin is ready to move higher after the correction and subsequent consolidation.
On-Chain trends paint a similar picture
The trends in the chain are in line with the bullish picture painted by this analysis.
For example, there is a coincidence of on-chain signs that Bitcoin is prepared to move up in a macro timeframe. CryptoQuant, a crypto-asset analysis company, recently shared 10 of these trends. They are as follows:
- position index of the miners
- hash tapes
- mean value of all stock exchange outflows
- ratio of the supply of Stablecoin
- All stock exchanges Stablecoin reserve
- MVRV ratio
- ratio network value to Metcalfe
- Stock to Flow
One of the main reasons for Bitcoin to continue to grow is that the hash rate of the network is reaching new record highs. For many analysts this indicates an underlying upward trend.