The recent Bitcoin (BTC) jump from $7,300 to $9,700 has renewed bullish expectations. Just three days ago, you had analysts calling for a return to the $3,000 lows — gold bug Peter Schiff even noted that $2,000 was in the cards; now, all eyes are on new all-time highs for Bitcoin.
Bitcoin Bulls Optimistic
Bitcoin has seen an absolute whirlwind of the past few days. In the past two days, the cryptocurrency has gained some 30%, rallying off the key $7,300 support region. The move was undeniably bullish; volume was off the charts by October’s standards, the sentiment was largely bullish, and public awareness of the crypto market spiked yet again.
This has been reflected in the options market for Bitcoin. According to cryptocurrency analytics provider Skew Markets, the options market is currently pricing a 10% expectation that Bitcoin will be trading above $20,000 in June of 2020. What’s notable is that the 10% expectation is higher than the 4% seen three days ago.
It’s back: expectations of BTC > $20k in June 2020 jumps from 4 to 10% in only three days pic.twitter.com/g0QMz7HdF7
— skew (@skew_markets) October 27, 2019
Can It Happen?
This may leave you wondering — can it really happen? Can Bitcoin really hit $20,000 by June of 2020, and thus allow the few holders of that options contracts to profit handsomely?
Well, potentially so. The recent move has made a number of technical indicators imply a massive upside for the leading cryptocurrency in the coming months.
As reported by NewsBTC previously, with this latest move from $7,700 to $9,700, Bitcoin’s three-day chart is looking extremely bullish.
He drew attention to the following reasons to back his prediction: the recent candle can be defined as a “bullish engulfing candle,” a descending trend line that originated at June’s $14,000 top was broken, markets have seen their biggest volume day in months, the MACD is printing a bullish divergence, and the Willy indicator is now leaving oversold territory.
Also, Smokey argued that the Ichimoku Cloud, a de-facto all-in-one indicator that allows traders to track trends, is printing an array of buying signals: a breakout past the Kumo, a trendline, and an impending bullish twist of the Cloud. He thus confirmed that “this is either the biggest bull trap ever,” a scenario which he said is highly unlikely, or “we’re in for a nice Q4 2019/Q1 2020 on BTC.”
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