Sebastian Sinclair: when $8500 is reached, bearish trend will be over
According to CoinDesk analyst Sebastian Sinclair, the stable grow will start when Bitcoin hits $8500.
He also notes that the price appears to be following a pattern last seen ahead of a bullish reversal from September 2015.
Three years ago the market was clearly bearish. It was over last September when it started going up. In order to make it happen again, Bitcoin should reach $8500 first. However, as of now the bearish trend has been dominating the market for 241 days.
Talking about short time run Omkar Godbole, CoinDesk analyst, states that the positive price action was preceded by a solid defense of the long-term trendline connecting the June low and Aug. 11 low and an upside break of the symmetrical triangle. The bullish price action on the hourly and daily chart indicates BTC could test the 10-week MA of $6847 in a day or two.
At press time, BTC is changing hands at $6450, having clocked a high of $6490 earlier today, according to Bitfinex data.
The symmetrical triangle breakout, as seen in the above chart, indicates a bullish reversal, meaning the sell-off from the recent highs above $7,400 has ended and the bulls have regained control.
Further, the 50-hour and 100-hour MAs are beginning to curl up in favor of the bulls. So, while there is a reason to be optimistic here, the downward sloping (bearish) 200-hour MA is warning the bulls against being too ambitious.
However, as of writing, the downward sloping (bearish) 10-day moving average, is putting brakes on the price rally.
Earlier Bobby Lee, the founder of the oldest Chinese crypto exchange BTCC, said that Bitcoin will reach $60 000 soon and the capitalization of the leading cryptocurrency will hit $1 trillion.