Bitcoin’s Daily Price Chart Is Flipping Bullish. Are We Going to the Moon?
Jack Dorsey is the CEO of Twitter and Square. Last Thursday, he took $50 million of Square’s cash and invested it in Bitcoin. Shortly thereafter, Bitcoin’s price saw gains for six days in a row. It’s not just the news of Jack Dorsey’s investment that is acting as a catalyst for the recent bullish trend.
Now the price is consolidating above $11,000 USD, which is causing technical indicators to show that $12,000 is well within reach on daily charts. The previous line of resistance prior to flirting with $11,500 was $11,250. Now that investors have crossed that line, $12,000 is the logical next step.
Bulls May Remain Cautious for A While
Market analyst Simon Peters of eToro believes that there may be more price consolidation in the short term before the bulls push the price over $12,000. Yet at the present moment, the current hourly chart is showing Bitcoin is slightly oversold on the relative strength index (RSI).
Still, both the short and medium-term prospects for Bitcoin’s price indicate a promising move to the upside is approaching. Veteran crypto trader and analyst Patrick Heusser happens to be the most bullish right now. He says Bitcoin is much more likely to hit $14,000 than it is to drop below $10,500 at the moment.
Can Anything Stop Bitcoin’s Next Bull Run?
The New York Times is reporting that the U.S. Senate is still at an impasse regarding a vote on a scaled-down stimulus package to help bail out Americans.
Shortly after recovering from his battle with the coronavirus, President Donald Trump hinted that he would focus on a much bigger stimulus package after the presidential election takes place next month.
Trump could certainly be dangling a carrot over the heads of investors and trying to win over votes by waiting, but the reality is the impending delay of declaring the winner of the election due to an increase in mail-in voting this year may mean the Senate has no choice but to come to a vote much sooner. Waiting for a stimulus package in January or February seems too far away.
Given that Bitcoin’s price is still strongly correlated with the movement of the stock market at the present moment, any added pressure to approve a stimulus package will likely maintain a bullish sentiment across investing markets. Only time will tell what happens next, but for now it seems investors are counting on a move up.
Written by: Jack Choros
Writer, content marketing at Netcoins.