Pomp: Bitcoin "Reminding Everyone Why It Is King" – Price Analysis, 12 Oct 2020
As the price of Bitcoin has managed to retake the psychological level of $11,000 per one digital coin, the positive sentiment among crypto enthusiasts has started to increase again. For example, Anthony (Pomp) Pompliano, a well-known crypto investor and the co-founder of Morgan Creek Digital, wrote on Twitter that Bitcoin was waking up:
The prominent cryptographer and Hashcash inventor Adam Back predicted that within the next two years, Bitcoin would reach circa $50,000 per one digital coin:
Also, on October 8th, Square, the financial payments company of Twitter CEO Jack Dorsey, announced that it had invested $50 million in Bitcoin:
After a positive week for the cryptocurrencies, now, the crypto market is consolidating. At the time of writing, according to Coin360.com, one Bitcoin costs €9,593.08 (+0.08%), one Ethereum – €315.92 (+0.32%), and one LINK – €9.22 (+4.66%):
Source: Coin360.com (Daily crypto market performance)
Now let's conduct a technical analysis of the price charts of the top cryptocurrencies against the euro.
In the 4-hour chart (4H), BTC/EUR has exited the Symmetrical Triangle that we mentioned in our previous analysis, and the uptrend has resumed:
As can be seen from the chart above, at the moment, BTC/EUR is at the upper line of the ascending channel (uptrend).
If the bulls can keep the positive momentum (bullish scenario), then we think the price of Bitcoin will continue to move around the upper line of the channel and slowly increase to the level of approximately €9,825 by the end of the week.
Conversely, if the bears resist the bullish pressure and gain control of the market, then the price of Bitcoin may drop down to the lower line of the ascending channel or a level of approximately €9,200.
The 4-hour chart of ETH/EUR is similar to the BTC/EUR chart – Ethereum has been able to exit its Symmetrical Triangle as well:
Moreover, last week ETH/EUR formed a Bullish Engulfing in the weekly chart (1W):
These bullish signals indicate that soon the buyers will try to push the price of the cryptocurrency further up, or at least will defend the current level.
In the 4-hour time frame, LINK/EUR has already exited the Bullish Flag (bullish continuation pattern):
In this case, usually, traders will set three targets: the first one (T1) is equal to Fibonacci retracement level 38.2 or €10.28; the second one (T2) – equal to Fibonacci retracement level 50.0 or €11.55; and the third one (T3) – equal to Fibonacci retracement level 61.8 or €12.83.
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The analysis is purely informational and does not constitute investment, financial, trading, or any other sort of advice and you should not treat any of Bitvalex's content as such. Bitvalex does not recommend that any cryptocurrency should be bought, sold, or held by you. You are solely responsible to conduct your own due diligence and consult an advisor before making any investment decisions.