Bitcoin really hasn’t done too well over the past few days; since the $9,200 peak seen on Saturday, the price of the cryptocurrency crashed as low as $3,800, marking a more-than-50% crash from the weekly high.
Nunya Bizniz noted that with the rally after Thursday’s crash has taken the cryptocurrency above the 200-week simple moving average — a level the cryptocurrency has not closed below in its decade in existence. Bizniz said that $3,800 “may turn out to have been one of the best entry points.”
Furthermore, analyst Moe noticed that there was an extremely bullish candle printed on the three-day chart of Bitcoin: the TD Sequential printed a nine candle, which is often where prices reverse.
Fortunately, bulls were given some breathing room on Friday, when the cryptocurrency rallied back above $5,000 to as high as $5,900 as buyers finally started to pick up the pace. While this marks an over 50% surge from the bottom, top analysts think that Bitcoin is poised to recover even more in the coming days.
Related Reading: Why Did Bitcoin’s Price Plunge 50% to $3,800 In 24 Hours?
Filb Filb, the crypto trader who called all of Q4 of 2019’s action and the subsequent recovery into 2020 when he published the below chart, recently gave three reasons why he thinks this is the case.
Why Bitcoin Could Soon Bounce, Per Top Analyst
In messages published to his, Filb Filb gave three reasons why Bitcoin could soon “squeeze up,” not giving a price target but still expressing a bullish sentiment.- Bitcoin’s short-term chart has formed a textbook Adam and Eve bottom, which is a good indicator that a bottom is forming and a subsequent reversal will rapidly take place.
- The funding rate on BitMEX, which hit extremes near local bottoms and tops, has reached a ridiculously high level for shorts, meaning that they pay longs. This suggests that market is leaning very short, something often seen near bottoms.
- And lastly, Filb Filb wrote that the “Bid side of the order book has massively recovered,” suggesting there remains buying demand in the crypto markets.
It isn’t only Filb Filb (whose work NewsBTC has covered previously) who is optimistic about Bitcoin.
BTC Weekly: The current dips below the log curve (blue) and the 200 week MA (red) were twice as deep as the next closest. This may turn out to have been one of the best entry points. — Nunya Bizniz (@Pladizow)Indeed, while Bitcoin has wicked below the 200-day moving average, it has yet to close a candle above this uptrend.
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