After a relatively long period of choppy trading within the lower-$5,000 region, Bitcoin (BTC) has finally incurred another influx of buying pressure that has allowed it to surge higher, with the key resistance level of $6,000 looming just over the horizon.
Now, one prominent analyst who has called previous Bitcoin crashes believes that the cryptocurrency is currently in the midst of a long-term recovery pattern that will ultimately allow BTC to surge significantly higher throughout 2019.
Rob Sluymer, a technical strategist at Fundstrat, has built a track record of accuracy when it comes to the crypto markets, as he has called previous drops with precision, including when Bitcoin slid from the $6,000 region to the lower-$3,000 region in late-2018, when he explained that the crypto had “significant technical damage” just weeks prior to the major drop.
Now, in a recent note, Sluymer that he believes Bitcoin is currently in the early-stage of a long-term recovery that will continue on throughout the year.
This news is emblematic of the growing corporate adoption that cryptocurrencies, and Bitcoin in particular, have been facing over the past year – despite the dreary price action.
Bitcoin Surges to $5,800: Is the Bear Market Over?
The recent series of price surges that have allowed Bitcoin to surge from its late-2018 lows of roughly $3,200 to its freshly established year-to-date highs at its current price of $5,800, may be the final nails in the coffin that have brought about an end to the persistent bear market.
“Use pending pullbacks to continue accumulating Bitcoin in the second quarter in anticipation of a second-half rally through ~6,000 resistance,” Sluymer explained, further adding that he sees BTC’s recent price action as “the early stage of a longer-term recovery developing.”
Furthermore, he also noted that this does not mean a drop back into the $4,000 region is out of the cards, but he does advocate for using any additional drops to accumulate larger positions.
“While it’s premature to conclude Bitcoin will not retest support near $4,300, we would encourage traders and investors to remain focused on the bullish longer-term technical profile developing… Bottom line: use recent weakness to accumulate,” he said.
Bullish News May Fuel Further Price Gains
The crypto markets have been witnessing an influx of bullish news that has drastically shifted sentiment for the better and may be fanning the flames that are driving these recent price gains. Earlier today, news broke that Facebook is in the process of building its own cryptocurrency-based payments system, a development that had long been anticipated by those in tune with the crypto industry. According to the report, the social media giant has been recruiting a number of financial firms and digital merchants in an effort to build a new system that could undermine current payment methods – which mainly consists of credit cards – and allow the company to increase their revenue by reducing the processing fees associated with other forms of payment.As Bitcoin continues to climb higher and more companies foray into the nascent markets, it’s beginning to look more likely that 2019 will prove to be another great year for the crypto industry as a whole.
Featured image from Shutterstock.
