New analysis: This is why Bitcoin has a 59% chance of continuing its bull run
A few hours ago, Bitcoin hit a new all-time high – the number 1 cryptocurrency traded for as much as $28,600 on some exchanges. Analysts and traders are now urging caution, because for many a correction is overdue.
Background: the benchmark cryptocurrency opened higher at $27,039 and hit an intraday low of $25,833 in early trading volatility. However, traders took advantage of the Bitcoin Evolution downward correction to accumulate at cheaper prices.
Subsequently, the BTC/USD price regained the $27,000 support level. The pair reached $27,336 before closing the day up 1.21 percent.
In the process, Bitcoin formed a small-square bullish candle on its daily chart, which resembles the so-called „Hanging Man“ candlestick pattern.
What is the „Hanging Man“?
The term reflects the shape of the candle that formed on Tuesday – with a small gap between the opening and closing prices and a longer lower wick to the downside. The pattern also has a negligible upper shadow, which many technical chartists believe makes it a perfect „hanging man“ indicator.
An independent analyst known as Cheds highlighted the Hanging Man pattern on the bitcoin daily chart in a tweet.
Bitcoin setup as shared by Cheds. Source: BTCUSD on TradingView.com
The chartist goes on to cite textbook descriptions that Hanging Man is a bullish continuation setup, with a 59 percent probability of sending an asset’s price higher. To the screenshot of the description, Cheds also coupled his technical analysis. According to it, a strong buying sentiment exists for bitcoin near its support wave in the EMA8 area.
Plenty of bullish fuel for bitcoin
Bitcoin price could likely continue its prevailing bull run in the $29,000-$30,000 area – unless it breaks decisively to neutralise its technically overbought signals.
But many other leading analysts remain bullish on bitcoin. Dan Tapeiro, the co-founder of DTAP Capital – an investment firm in Connecticut, believes the cryptocurrency could start a run-up towards $53,000. He is eyeing a total market valuation of $1 trillion.
„Institutional adoption in the first inning. At $1T, every investment committee will have to have a discussion. Expect liquidity to become more important than privacy.“
Bitcoin’s market cap is currently near $500 billion, led by a dramatic rise in institutional adoption as a safe haven and anti-inflation asset. Recent mainstream cryptocurrency investors include MicroStrategy, Square, Ruffer Investment, MassMutual, Paul Tudor Jones, Stan Druckenmiller and many others.