Analyst Awaits BTC “Upset”
You know what they say: “history doesn’t repeat, but it rhymes.” Leading crypto trader going by the moniker “Filb Filb” recently posted two Bitcoin (BTC) charts and a message, in which he bashed short-term bears.
The first chart showed an inverse BTC (up means lower, down means higher) from the July to December period. During this time, the cryptocurrency held tight in the $6,000 range, save for one midsummer spike that brought BTC to $8,500, prior to tumbling below $5,000 to the $3,200 December low that many investors vividly remember. The second chart depicted BTC’s recent price action following the $6,000 to $3,000 move.
Although these two periods seemingly have no correlation, Filb noted that there are eerie similarities in the shape of the price action, along with the time that elapses with each move. Thus, if Bitcoin follows the inverse chart to a tee, BTC could see a massive green candle to the upside sometime in the next two weeks. If history is followed, this move could bring the asset to $6,000, thus killing the crypto bear that has plagued this market since late-2017.
In response to Filb’s noticing, some politely begged to differ. A commenter wrote that he saw other analysts calling for sub-$3,700, or even lower, especially with Monday’s sudden selloff in mind. But Filb asserted that this was his point, hinting that he intends to be a contrarian indicator to the cynics.
And while the two charts above aren’t too convincingly, he recently made a number of comments as to why BTC could break above $5,000, the aforementioned message barred.
What Will Propel Bitcoin To $5,000+?
Filb recently explained that when Bitfinex’s BTC long-short (L/S) ratio rose above 1.5, returned to one or below, and then moved back above 1.25 over the past 12 months, Bitcoin moved by higher by approximately 25% to 50% each time. On the other hand, when the L/S ratio failed to break 1.25 after a move under one, BTC entered “very bearish territory,” resulting in fresh lows for crypto.
Currently, however, the L/S ratio has reached 1.5, collapsed to one, and thus could potentially rebound to or past 1.25. And with that, Filb remarked that Bitcoin is “likely to break higher based on this metric alone,” drawing a hypothetical trading range of a 25% rally, which would bring BTC up to $5,000 for the first time in mid-November.
In another tweet, he drew attention to an array of bullish-leaning technical signals . Firstly, the 12-hour moving average convergence divergence (MACD) has trended positive above zero. The chaikin money flow has purportedly signalled that there is underlying buy-side pressure in this market. And, more importantly, the cryptocurrency has begun to make a move on the $4,000 range, which could allow it to break into a zone of low orderbook resistance, thereby setting the stage for a strong rally higher.
Funnily enough, there have been some that have been trying to quash the buyoant sentiment. As reported by Ethereum World News, Magic Poop Cannon argued that he doesn’t see BTC breaking closer to $6,000 until the end of the year, citing resistances and impending “chop” that will plague this market.