This Trader Doesn’t See Why Bitcoin Can’t Hit $12,000 Soon

After starting last week rather weak, Bitcoin began to push higher into Friday and into the weekend, ending up pushing as high as $11,500. For context, the lows of last week came in closer to $10,400, far below the local highs.

While Bitcoin’s upward momentum stalled on Sunday and Monday morning, analysts are still certain that the coin’s short-term trend is bullish. One top investor in the space recently said that there’s a good likelihood Bitcoin trades at $12,000 this week.

What may stop a Bitcoin rally, though, is news of a further delay to another fiscal stimulus bill in the U.S.  The bill is partially responsible for pushing BTC higher last week.

Related Reading: Ethereum Transaction Fees Surge to All-Time Highs After Uniswap Launch

Bitcoin Prints Pivotal Weekly Close

Bitcoin ended up maintaining the technical supports in the low-$11,000s into the weekly close on Sunday morning. The cryptocurrency managing to do so, analysts say, will give it fuel to push even higher in the days ahead.

Crypto-asset analyst Josh Rager recently stated that he doesn’t know why Bitcoin cannot push to $12,000 “this week,” noting how it trades above the aforementioned supports:

Heck of a weekly close for Bitcoin. Price is back up in previous range prior to breakdown and personally, I don’t see why we can’t see $12k this week. Take it day by day, level by level.

Image

Chart of BTC's price action over the past few weeks with analysis by crypto trader Josh Rager (@Josh_Rager on Twitter). Chart from TradingView.com

It’s worth noting that even if Bitcoin moves to $12,000 this week, it may correct in the next day or two towards $11,100. Due to weekend volatility, Bitcoin formed a CME futures gap between Friday’s close of $11,100 and the opening price closer to $11,400. As 75% of CME Bitcoin futures gaps close within the week they open, there is a good likelihood BTC retests $11,100 in the days ahead.

Related Reading: 

Read More

Be the first to comment