Bitcoin is going to hit $20,000 by the end of this year, according to a precise technical pattern.
The benchmark cryptocurrency is currently trending inside a rising channel, confirmed by the formation of more than two reacting highs and lows. The price bounces off the lower trendline of the channel support to target the upper trendline, which is resistance.
Similarly, it corrects lower after testing the upper trendline to reclaim the lower one. As long as the price fluctuates inside a rising channel, its bias remains bullish. That typically follows with a breakout in the direction of the previous trend. Since bitcoin was rising before the channel’s formation, its likelihood of heading upward is high.
The analogy takes cues from a 2019 fractal. As shown in the chart above, the bitcoin price broke out of its 2018 bearish range in December 2018. It rose steadily inside a rising channel before an upside breakout on April 2, 2019, shot the price upward from $4,132 to $5,121.
That led to a price rally that would exhaust near $14,000 in June 2019. The upside, meanwhile, formed two ascending channel patterns, each resulting in a massive breakout.
SAME PATTERN, DIFFERENT YEAR
Bitcoin in 2020 is repeating a similar pattern. The cryptocurrency reversed after dipping to its yearly lows below $4,000. It then trended inside a Rising Wedge, which is, technically, a bearish indicator. Nevertheless, traders invalidated it to establish a more definite bullish bias. Read More