Cryptanalyst Philip Swift predicts that Bitcoin’s upcoming halving will trigger a sentiment reversal next year and bring the Bitcoin price back up to five-digit highs.
The bull market is imminent
The Bitcoin price is currently consolidating in the middle range of $ 7,000. He was flat in the last week with a short break up. Since his fall below $ 8,000 on November 21, Bitcoin has failed to break the resistance and move higher. That might indicate that it gets worse before it gets better.
Analyst Philip Swift has compiled various charts and has come to the conclusion that we may be on the cusp of another bull market. The first chart uses the 350 day moving average as a test of the support the Bitcoin price currently holds. He adds that the price movement beyond this indicator has usually signaled a bull market.
However, this is not the most common technical indicator. Most analysts tend to use the 50 and 200 moving averages for the weekly, daily and shorter periods. BTC is currently well below the daily average, but holds the 50-week average.
The dynamics of the network is another metric that should be kept in mind. On-chain volumes could also signal a move into bullish territory.
Swift thinks we are in the late bear phase of the market cycle:
“If we combine all that with the Golden Ratio multiplier to look ahead, we’ll probably take a big step up in Jan / Feb and price up to the order of 350 x 1.6 (green line) which will be around $ 12- $ 13,000. “
He expects an explosive development by the high 2019 in the first two months of next year. Bloomberg analyst Mike McGlone is also convinced that the Bitcoin price could rise to five-digit levels in 2020.
All hope is based on halving
Halving next year could also help. Google Trends show that the number of search queries for “Bitcoin Halving” is increasing, while the search for “crypto” is generally much lower.
The stock-to-flow model is also on course, as analyst “PlanB” emphasizes. This ratio is used to compare the current inventory of an asset with the new production (ie the amount of BTC mined this year).
Currently, the Bitcoin price remains in a sideways channel after falling below solid support. In 2020, however, he could see further gains, which are triggered by the halving.
However, the likelihood of major movements before Christmas is still low.