According to Josh Rager of Blockroots.com, Bitcoin should rise to $12,000 by the end of the week.
The analyst raised his price target for the crypto currency after the latter posted a five-day winning streak through Sunday. During this period, BTC/USD rose by more than 7.5 percent to reach a weekly high of $11,498, while traders are hoping for the release of the second coronavirus stimulus package by the U.S. Congress.
According to Josh Rager, Crypto Code review sees a $12K night test after closing above a weekly resistance level.
The pair also jumped higher after Square, a global payment company led by Twitter CEO Jack Dorsey, bought BTC for $50 million.
Traders interpret this move as a sign that more companies are entering the Bitcoin space. Ian Lee, a crypto-currency-focused venture capitalist, comments that the U.S. corporate sector currently has $25 trillion worth of assets.
Even if they invested only 0.1 percent of their reserves in Bitcoin, the crypto currency would receive about $25 billion in inflows.
Meanwhile, Rager focuses on the medium-term technical aspects of Bitcoin. The analyst stresses its bullish tendency, when the crypto currency closed the previous week in a range, in which its price jumped before over the 12,000 $ mark. According to Rager, the fractal could repeat itself in the current weekly time frame.
The Ascending Channel
Other analysts agree with this. TradingView chartist Vince Prince, who had previously accurately predicted a boom in the Bitcoin market, expects the crypto currency to grow more strongly. Nonetheless, the analyst warns of “serious resistance” based on his outlook for the rising channel, as shown in the chart below.
The outlook from Bitcoin’s Ascending Channel warns of a short-term retreat.
“The next retreat will lead [the price] to the next important support – the red 55-EMA,” Prince said. “Bitcoin also has the channel centerline as support. It is inevitably crucial to hold this level since a sinking below this level will increase downward pressure towards the lower limit”.
The analyst adds that Bitcoin’s ability to maintain the support of the Ascending Channel would ensure that it gains strength. Should this happen, the price would move above the resistance.
This would take BTC/USD well above the $12,000 mark.
Macroeconomic fundamentals support Prince’s technical outlook. Bitcoin has risked a crash due to growing uncertainty about the U.S. stimulus measures.
The assistance is uncertain because the ruling Republicans and Democrats are unable to definitively determine its scope.