After a suppressed H2 2019, Bitcoin prices are bottoming up. This optimistic view is according to an influential crypto analyst, Crypto Loomdart who didn’t shy away from posting his two cents—and his confidence, through a Twitter bull “poll”.
Probable Reasons Bitcoin Surged
Is bottom in
— Crypto Loomdart (@loomdart) January 3, 2020
Market commentators are net bullish and following the lull the better part of last year, while discounting the emphatic performance of H1 2019, the $400 surge that took mere minutes could as well mark the beginning of a turn that will push BTC from the current consolidation and into a positive rally in Q1 2020.
Given, the spark in market activity is some few days after the December and New Year holidays where the crypto market, which is already not the most liquid considering the huge spreads and market swings, would largely be marked by low trading volumes and general inactivity.
Behind this are several triggers that could explain the unexpected resurgence of bulls.
Bitcoin Technical Indicators Point to More Upsides
Technically, Bitcoin prices are in a consolidation—which is positive, as bulls, despite the strong wave of bear pressure in the first half of December 2019, got a shot in the arm on Dec 19 when prices stemmed the down trend following the climactic sell-off of December 18.
Visible from the chart is a ranging market where bears remain dormant and fizzling out while held within Dec 19 bullish bar. From an effort versus result point of view plus the double-bar bullish reversal of Dec18-19, buyers have an upper hand.
Therefore, it is highly probable that the reaction from the 61.8% Fibonacci retracement level from the last two weeks of December 2019 could spur more gains going forward.
Besides this, notice that there is a Bollinger Squeeze in the daily chart. A squeeze, according to the creator of the indicator, John Bollinger, precedes a period of expected high volatility.
Supportive technical indicators complement fundamental events that are overly supportive of Bitcoin. Bitcoin has gradually evolved into a store of value and a medium of exchange, a true utility for citizens in troubled economies.
As Bitcoin recovers, $48 million worth of BTC sells were liquidated at BitMEX, a crypto derivatives trading platform.