Crypto Analyst Predicts Bitcoin Rally Towards Year-End Despite Bearish Sentiment
A crypto analyst known as Stockmoney Lizards has made a bold prediction that investors should brace themselves for a potential Bitcoin (BTC) rally towards the end of the year, despite the current bearish sentiment in the market. The analyst, who shared their insights in a recent post on July 13, highlighted that technical analysis points towards bullishness for Bitcoin.
The basis of the analyst’s prediction lies in Bitcoin’s interactions with the lower border of the weekly Bollinger Band, a popular tool used by traders to identify overbought and oversold conditions. According to Stockmoney Lizards, Bitcoin has touched the lower border of the weekly Bollinger Band three times since November 2022. Historical data from the previous instances suggest that significant price increases could be on the horizon.
In November 2022, the first touch resulted in a 100% increase over seven months, with Bitcoin experiencing a substantial rally and doubling its price. The second touch in June 2023 saw an even more impressive surge, with Bitcoin tripling in value over the same period, achieving a 200% increase in seven months.
Despite the possibility of some short-term downside, the analyst believes that historical patterns indicate a strong upward movement for Bitcoin, pointing towards a robust year-end finish. The expert emphasized that investors should not be fearful but instead recognize the potential for gains in the near future.
The current market conditions, including the recent sale of Bitcoin by the German government and the inflow of capital from the Mt. Gox repayment, have contributed to the bearish sentiments surrounding Bitcoin. However, there is optimism that Bitcoin could make short-term gains, especially with reports of the German government selling its last Bitcoin holdings and notable capital inflows into the spot Bitcoin exchange-traded fund (ETF).
At the time of reporting, Bitcoin was trading at $58,406, showing signs of optimism on the weekly chart and gaining over 2% in the last 24 hours. If Bitcoin ends the year strongly as predicted by the analyst, it could align with the bullish post-halving rally and potentially reach another all-time high.
Disclaimer: The content of this article should not be considered investment advice, as investing in cryptocurrencies is speculative and involves risks.
Source: https://finbold.com/this-bitcoin-technical-indicator-signals-a-strong-year-end-finish-ahead/
