Bitcoin Could Stair-Step Higher
Bitcoin (BTC) still seems to be piping hot. As of the time of writing this article, the aggregate value of all cryptocurrencies remains at $175 billion — just shy of the year-to-date high established late Wednesday night. This effectively non-stop bullish price action, which pushed BTC well above $5,200 mere hours ago, however, has led some to claim that a short-term pullback to under $4,800 or even lower could be inbound.
According to Todd Butterfield, an analyst at the Wyckoff Stock Market Institute, though, BTC might not collapse. In fact, Butterfield writes that if the crypto asset follows his bullish Elliot Wave chart, which accurately predicted this 25% rally, there aren’t any “real sell reasons.”
The above chart shows that Bitcoin will likely return to $4,900, which is a bearish move ongoing as I write this (BTC just dipped to $4,980), before ranging between $5,000 and $5,700 until the end of May. This should then be followed by an eventual rally to $7,200 potentially by June, which is where Butterfield’s model ended.
While this sounds hard to believe, especially considering the brutal bear market that ravaged traders over the past 14 months, he isn’t the only one bullish on Bitcoin’s prospects.
Brave New Coin’s Josh Olszewicz recently noted that BTC on its daily chart recently closed above its Ichimoku Cloud, a multi-faceted indicator used to show levels of support and resistance, for the first time in 442 days, when this market established a top prior to crashing dramatically. Considering that Bitcoin traded above its Cloud during much of 2017’s rally, this sign has been deemed bullish by many traders.
Photo by Mikael Kristenson on Unsplash