A U.S. Congressman may have just called for the ban of cryptocurrencies, but Bitcoin (BTC) hasn’t cared one teeny-tiny bit. In the past 24 hours, BTC has rallied by 3%, perpetuating a rally that has been going on for over a month now.
While some cynics have argued that Bitcoin is rallying too fast and too high for its own good, some are sure that BTC’s technical set-up still is looking entirely bullish.
Bitcoin Ticks Past $6,300 In 2019 First
David Puell of Adaptive Capital, who last week postulated that BTC was trading in a clearly bullish broadening ascending wedge, explains that the cryptocurrency is literally going short-term parabolic. In fact, Puell defines Bitcoin’s recent price action as “vertical,” accentuating that bulls are truly in control.
He adds that with the number of short positions on both Bitfinex and BitMEX continuing to rally to new year-to-date highs, the potential for a short squeeze has boomed. Puell notes that if BTC hits $6,400, as his parabolic model foresees, “a perfect blow-off top” could form, whereas shorts are squeezed, and BTC rallies in a 2017-esque fashion.
$BTC: Price is not only parabolic, but vertical now.
Shorts are still far from getting fully squeezed.
$6.4k may activate longs from late trend traders, setting up the perfect blow-off top.
Blue: pullback targets after this potential climactic top from who knows where. pic.twitter.com/L4J3Mno6ki
— David Puell (@kenoshaking) May 10, 2019
Others would agree. Financial Survivalism, who once revealed a model that saw BTC falling to $800 in the current cycle, explains that Bitcoin’s 10-minute chart is currently shaping up to be a short-term Hyperwave. As this form of technical analysis predicts, BTC could see a vertical rally to the high $6,000s, and then may see a near-vertical drop back to the $5,000s.
— Financial Survivalism (@Sawcruhteez) May 10, 2019
Not only is Bitcoin…