An analyst who predicted that the price of Bitcoin would reach above $ 18,000 now believes that we should wait for the price to correct. However, in his view, the long-term trend will continue to be upward.
To Report Bitcoin cryptocurrency has experienced a very strong uptrend in recent weeks; A trend that pushed the price of this digital currency to $ 18,900.
The king of digital currencies has grown by about 70% in just five weeks, a record performance.
A few weeks ago, when Bitcoin traded in the $ 13,000 to $ 14,000 range, many analysts were confident that the price would adjust to the $ 12,000 range, which it did not. Other conservative analysts at the time claimed that bitcoin had grown rapidly so far and was ready for reform.
But one trader predicted a jump to $ 18,500. The anonymous trader, who works under the pseudonym “Bitcoin Jack” on Twitter, has correctly predicted all the big movements of Bitcoin since the big fall of March (March 1998).
On March 13, just hours after Bitcoin reached $ 3,500, he predicted a V-shaped return to $ 10,000 by May or July. Recently, as mentioned, he was able to correctly predict the level of $ 18,500.
The analyst uses technical approaches such as Elliott waves and market cycles in his predictions. In addition, he uses fundamental analysis.
Bitcoin Jack announced today on Twitter, while pointing to the possibility of a return to low levels, that it is considering a sell position (short). In derivative markets (futures and options), traders enter the short position in order to profit from falling prices.
He shared a picture of the Bitcoin price chart on his Twitter, which you can see below. According to this image, Bitcoin is heading towards failure following a parabolic uptrend. This parabolic process began in September. The loss of the parabolic trend often indicates that the price will correct between 60 and 80% of where the trend started (not the price itself).
So, if this analyst is right, we should expect the price of Bitcoin to reach the $ 13,000 range.
However, given the fundamental signs and the good condition of corporate investors, the return of prices to lower levels is not entirely clear.
While Bitcoin Jack believes that Bitcoin will improve in the short term, it still has an upward trend in the long run.
He recently tweeted some positive fundamentals about Bitcoin that could pave the way for a long-term uptrend.
According to the analyst, some (but not all) of these fundamentally positive factors are:
- JPMurgan Bank’s view of bitcoin has changed from declining to rising
- Billionaires like Paul Todor Jones, Stanley Druckenmiller and Michael Saylor are buying bitcoins
- People has made it possible to buy digital currencies and will soon be able to pay with these currencies as well.
- Grayscale is buying a lot of bitcoins for its corporate clients
- The number of resident bitcoins has reached the highest number in history, which indicates an increase in long-term investment.
- Increasing reserves of national currencies due to financial support packages in response to the Corona crisis.