Bitcoin Makes a “Classic Bull Flag” and Jumps above $9,500, Get Ready for $16,000

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Bitcoin has made a new high of 2020 at $9,521 at Bitstamp while over $1 billion worth of BTC has changed hands on top ten exchanges with real volume.

Currently, we are up 29.69%, on track for the best Q1 in 7 years. 2014, 2015, and 2016 were three consecutive red years when Bitcoin registered losses of 39.9%, 23.73%, and 3.21% respectively in Q1, as per analytics firm Skew. 2018 was also a red year, recording as much as 50% losses in Q1.

Years 2017 and 2019 saw some greens of 11.21% and 10.34% respectively which are extremely lower than the returns seen in January this year.

Larger Altcoins Enjoying the Greens too

Bitcoin surging has altcoins climbing as well, with Litecoin up over 13%, Zcash 9.19%, Chainlink 7.63%, and EOS 6.76%.

But amidst this spike, US-based leading exchange Coinbase went under maintenance. However, this has been a scheduled one.

Pulback expected after a Breakout but Bitcoin Looking Strong

Just recently we reported how Mati Greenspan, founder of Quantum Economics stated that “it doesn’t get much more bullish than this,” as Bitcoin crushes 200 Day Moving Average and downward channel.

In his Thursday newsletter, Greenspan shared that normally after a breakout like the one we saw, a pullback is expected.

“Most of the time when a major resistance level is broken to the upside, the market likes to then test that very same level as a support to see if it can then hold the price up,” said Greenspan.

But the resulting pattern this time is looking like a “classic bull flag,” which is just another sign pointing up. And today, we recorded another 5% move up. According to Greenspan, an upward break of $9,400 means we could test $10,000.

Analyst Bob Loukas echoes similar sentiments as he said the new cycle is coming into focus but it is still bullish because it hasn’t turned lower.

An 80% Uptrend Coming

But this isn’t all, a move above 200 DMA is a “positive milestone and reinforcing 2020 shaping up to be great year for BTC,” says Bitcoin bull and research firm Fundsrat’s Tom Lee.

It is actually a good long term indicator that is viewed as an upward trending market. Historically, such a move has also resulted in an 80% move that means we could go as high as $16,000.

Today was also the time when the open interest on crypto derivatives exchange BitMEX for XBTUSD reached a crucial level of $1 billion yet again. Previously, whenever this physiological level was hit, it instantly dropped.

The market is currently very bullish and volatility is also on the rise as longs get over leveraged.

Overall the market is looking good but with the market getting greedy, as Crypto Fear and Greed Index to “greed” from “fear” last week, it’s also time to be cautious and snatch any buy the dip opportunity.

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