The Bitcoin price recovered strongly yesterday, Tuesday – and that’s just the beginning, explains a market analyst. His technical analysis suggests that the cryptocurrency could update the 12-month high by June.
Bitcoin price rally will get steeper
Bitcoin reached nearly $ 7,500 today, the highest level since March 12. At that time, the crypto market crashed and Bitcoin broke below the $ 4,000 mark.
Now the largest cryptocurrency is about to double its value from the March low – and it can go even further.
A crypto trader predicts that Bitcoin price could hit $ 13,800 by the end of June. However, he also emphasizes that – unsurprisingly – it is impossible to accurately predict the BTC price.
According to his technical analysis, Bitcoin will initially consolidate over $ 9,100 by the end of the month. Although this is plausible, the cryptocurrency will have to undergo a small test in the coming hours, since it has just formed a double top.
This is a bearish pattern that often precedes a trend reversal.
If Bitcoin manages to break above $ 7,500, it’s fair to say that $ 9,000 will be the next strong resistance test. At the beginning of March, the bitcoin price suddenly began to plummet from this level after the stock market slump amid the coronavirus panic.
Fundamentals support bullish stance
In addition to the bullish aspects created by the technical analysis, Bitcoin also has more support from the fundamental side. First, equity markets are back on a growth path, hoping that the pandemic in Europe has just peaked as Italy, Spain and the UK report fewer new cases.
The Fed has also pumped trillions into the foreign exchange market and bought government and corporate bonds to support the economy. This liquidity surplus will sooner or later be reflected in the Bitcoin price.
Finally, an aggressive bullish rally could trigger the FOMO effect (“Fear Of Missing Out” – the fear of missing something) that may send Bitcoin to new 12-month highs.