Bitcoin market analyst filbfilb reveals key similarities between now and late 2016 as bullish sentiment keeps building for BTC price.
Bitcoin (BTC) is repeating the bull run that sent it to $20,000, chart data shows as a new report says $10,000 was an “entry point” for investors.
BTC price 20-week moving average hits key position
The key metric, filbfilb said, is the interplay between BTC/USD spot price and its 20-week moving average.
At present, the relationship between the two is copying that from late 2016, laying the foundations for the bull run which delivered returns of over 3,000% within the year.
In comments, filbfilb added that 2020 was giving signs of being different to bullish phases that had come since, specifically the three-month run last year which topped out at $13,800.
Focusing on the near-term, however, fellow Cointelegraph analyst Michaël van de Poppe argued that a failure to retain $11,200 would result in a correction towards $10,000.
“$11,200 is the support area. If that’s lost, we’ll see more ranging and look for $10,500-10,700 first,” he commented on Thursday.
Filbfilb had previously told Telegram trading channel subscribers that reaching $11,600 would fuel a return to $12,000, but that this level would “unlikely” be cleared.
BTC/USD weekly chart with 20-week moving average highlighted. Source: filbfilb/ Twitter
OKEx: $10,000 “deemed reasonable entry point”
Zooming out, other sources were likewise bullish. In a report to be released today, the research arm of cryptocurrency exchange OKEx said its technical investigations revealed definitive support for Bitcoin at $10,000.
“In light of these insights, it would appear that the March 2020 crash saw weak hands pushed out of the market, allowing it to gradually recover and reclaim $10,000 — which put most open positions today in the green,” researchers concluded.
“Moreover, the position buildup leading up to current levels (between $10K and $12K), coupled with the current mildness of profit-taking, indicates that these prices were deemed reasonable entry points by participants. It also indicates that those in profit are willing to hold their coins for larger gains in the future.”
OKEx added that the possibility of BTC/USD returning below $10,000 may now be over.
As Cointelegraph reported, a consensus is already building around institutions digging in at current price levels, fuelled by buys from Grayscale and MicroStrategy which vastly outpaced newly mined BTC.