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One Trader Thinks Recent 10% Rally of Bitcoin Could Lead to Something Much Greater: a Full-Fledged Recovery
The Bitcoin price today chartered into positive territory after weeks of bearish action near $3,400. It Adam and Eve pattern in Bitcoin Charts | Source: GalaxyBTC Twitter AccountAdam-and-Eve, technically, is a double-bottom scenario, in which the price first forms a narrow, pointed V-shaped bottom called Adam. After that, the price corrects higher, falls again to retest the said Adam’s valley bottom. But this time, the new bottom formation is more rounded and broader, which is called Eve. The chart shared by GalaxyBTC shows that the bitcoin price is forming the same Adam-and-Eve price formation. It would be confirmed once the price closes above the peak between two valleys.What if. $BTC pic.twitter.com/UT5ay7ElDn— Galaxy (@galaxybtc) February 8, 2019Per GalaxyBTC, the Adam valley’s high lies somewhere near $4,390. If BTC confirms a breakout action above the said level, then the price could be aiming at a full-fledged recovery towards – to begin with – $6,000.Could Bitcoin Reclaim $6,000?Reclaiming a level that had held bears for far too long in 2018 would signal a robust long-term sentiment for Bitcoin. Adam-and-Even somewhat predicts something that every bitcoin enthusiast wants to be true. However, speaking realistically, the digital currency has enough barries to break before it even thinks about a “full-fledged recovery.”According to Eric Theis, the current uptrend is a part of “deja-vu” descending channel formations over the recent months. In English, what he means is that bitcoin could fall even lower.$BTCRinse, Repeat.
Rinse, Repeat.Deja Vu pic.twitter.com/CGaZx9FmrN— Eric Thies (@KingThies) February 7, 2019The chart above indicates that bitcoin is inside a falling wedge pattern. It means the asset would undergo a breakout action in the near-term, only to consolidate sideways after that. Then, it would fall again while repeating the earlier price actions.Meanwhile, the bitcoin market appears more bullish when it comes to fundamentals. Not to mention that the latest rally developed right after Robert J. Jackson Jr., a commissioner at the Securities and Exchange Commission, said that they would approve a bitcoin exchange-traded fund in the future.According to Gabor Gurbacs, the director of digital assets strategy at VanEck, a regulated Bitcoin ETF would attract at least a billion dollars to the digital currency space. At the same time, the launch of Bakkt, an ICE-backed bitcoin futures platform, could attract more institutional investors to space.$6,000 looks like an easy target to achieve, therefore.But then, who knows.
Author: Davit Babayan
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