Bitcoin [BTC] Price analysis: BTC Bulls Upbeat, Next Target $6,000?

Latest Bitcoin [BTC] News

The crypto market is flashing green and after a lull, Bitcoin [BTC] is spearheading this week’s recovery, adding six percent and nine percent in the last day and week. If anything, this is solid performance, perhaps a glimpse of the future and an upbeat picture of what the market should be used to in weeks ahead. However, what is interesting is the way prices are shaking off FUD stirred by Tether and BitFinex imbroglios.

As the most liquid stable coin the space, questions around its 1:1 peg against the USD can be a source of fear. That’s exactly what the NY Office of the Attorney General is questioning iFinex, the company that manages both BitFinex and Tether Limited.

Unfortunately, BitFinex’s $850 million is yet to be recovered, months after the exchange channeled the funds to a Panama company, Crypto Capital. Their comingling with Tether reserve funds and the admission by the lead counsel at iFinex that the amount of USDT in circulation is not commensurate with what is in there reserve is negative, reverberating in the space and dominating news headline. However, with every USDT FUD, crypto assets—mainly Bitcoin, tend to benefit. We saw that last year and it is happening now.

BTC/USD Price Analysis

Price wise and Bitcoin (BTC) bulls are firm, trading above $5,500—as aggregated from coin trackers. Because of this, our BTC/USD trade plan is firm and risk off traders can begin accumulating on pullbacks with first targets at $5,800 and later $6,000.

To reiterate our stand, Bitcoin (BTC) is technically under bear pressure and bulls, despite an expectant community, are not firm above important resistance levels at $5,800–$6,000. It is easy to see why. Note that bears of Q4 2018 stand out.

Therefore, for the nullification of last year’s bear breakout pattern, it is imperative that buyers not only break above $6,000 but in doing so, the accompanying volumes must be above average. That will not only signal a new phase, a wave of higher highs opening doors for risk-averse, conservative traders, but will sync price action with bulls of Q4 2017.

In that case, it is likely that BTC would print higher and should there be fundamental accelerants like the SEC approving any of the nine Bitcoin ETF, prices would easily expand above $8,000 to $15,000 in no time.

Chart courtesy of TradingView—BitFinex

Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.