Bitcoin is still on an impressive run, but speculation about where the asset is headed is wild. A crypto analyst has shared his own expectations for the leading cryptocurrency, taking into account both sides of the coin and the potential prices it could deliver.
Bitcoin price rises to $40,000
In an extensive analysis, crypto analyst and trader FieryTrading has mapped out how the Bitcoin price could reach $40,000. The analysis posted on TradingView as of November 8 points to the fact that the BTC price has continued to trade in a tight bullish channel since October.
This proved to be true when the asset’s price later rose even above $37,000, before the pullback to the mid-$36,000s. The steady recovery that has been categorizing Bitcoin dips since the rally began in October has reached higher lows, as the analyst notes. FieryTrading calls this something that shows an asset is “classically getting ready for the next pump.” Further adding, “I think the same goes for BTC.”
Source: Tradingview.com
The analyst expects Bitcoin to continue rising for the foreseeable future, and their initial target of $37,000 was already crushed on November 9. After this, the analyst expects that “a retest of the top channel can be expected as confirmation of the breakout.”
Naturally, the price target for this revival has been placed at $40,000 by FieryTrading, as long as the top of the said channel is reached. In a subsequent post, the analyst confirms that this has indeed happened.
BTC marks time for recovery
In a November 9 update, FieryTrading revealed that Bitcoin has indeed reached the top of the channel, which could lead to a rejection. However, the analyst explains that this rejection will only be temporary and could be followed by a breakout to the upside. The chart marks a retracement, after which the price moves towards the $40,000 target.
However, there is no guarantee that a rally to $40,000 will occur, and as with any analysis, there is always the risk that it will be negated. FieryTrading points out that Bitcoin could see a massive sell-off, sending the price back down to $37,000. But even this does not deter the trader who believes, “It is healthy for price to retest the channel’s highest resistance.”
The latest update to the analysis acknowledges a deeper crash than expected, but it appears the analyst’s forecast still holds. “Eyes open for V-shaped bounce. Whipsaw longs and shorts at the same time, while keeping the trend intact,” says FieryTrading.
BTC bulls hold $37,000 | Source: BTCUSD on Tradingview.com
Featured image from Investing News Network, chart from Tradingview.com