- Bitcoin has faced a retracement since hitting the highs of $15,975 last week.
- BTC currently trades for $15,400.
- Analysts remain confident in the short-term prospects of Bitcoin.
- The same trader that in the middle of March predicted that Bitcoin would see a strong V-shaped reversal to $10,000 by May or June is bullish.
- He says Bitcoin could hit $17,000 in the coming week.
Bitcoin Likely to Move to $17,000 Next
Bitcoin has faced a retracement since hitting the highs of $15,975 last week. The coin currently trades for $15,400, closing above key support levels, though it remains down from the weekly highs.
Analysts remain confident in the short-term prospects of Bitcoin, though. The same trader that in the middle of March predicted that Bitcoin would see a strong V-shaped reversal to $10,000 by May or June recently said the following in reference to the chart below:
“Breakout, retest, strong volume sweep down, retraced the entire volume zone and more. More dump would surprise me. Breakout trading time, above red. 15-15.3 would be an ideal place to bid.”
The chart suggests that the drop that Bitcoin saw on Friday and Saturday represented the requisite drop one should expect after the rally BTC experienced. The analysis indicates that once BTC consolidates more around $15,500, it will rip higher to $17,000, potentially by the middle of this week.
Bitcoin rallying to $17,000 from the current levels would mark a 9.5% rally from current levels.
Chart of BTC's price action over the past two weeks with analysis by crypto trader Bitcoin Jack (@BTC_JackSparrow on Twitter). Source: BTCUSD from TradingView.com
He is far from the only analyst that has shared this belief over recent days. As reported by Bitcoinist previously, another trader said that Bitcoin looks as though it will soon move toward $17,000:
“I think there’s a decent chance bitcoin breaches $17k and even into $18k in the next 10 days (next weekly candle). We are due for a decent mid timeframe blowoff and chill for a bit and wicking into the ATH cluster just feels so right… The path to $18k or ATH wick seems the path of least resistance. Nobody wants to sell until then and everybody is buying dips. Easiest way to create market balance is to do it quickly then let the market chop around a bit.”
Causes For Concern
There are some causes for concern, though.
The funding rates of Bitcoin futures markets have finally entered the neutral to positive range after hanging in the negative to neutral range for weeks. This suggests an increased amount of long trading activity, despite the rally being led by the spot markets.
Some fear that lots of long-taking may result in a long squeeze if there is a sell-off. This could result in a rapid flush lower that would likely catch many off guard.
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Bitcoin Is Primed to See 10% Jump, Says Analyst Who Called V-Shaped Bounce
Crypto Sol recommends CEX.io for the best rates for cryptocurrency trading.