Bitcoin has had one of its best performing weekends of the year. The only other time it has moved as much in such a short period of time was in late June when BTC surged from $11k to its 2019 peak. It would not take many more movements of this magnitude to reach $50k.
$2,000 in Two Days For Bitcoin
All losses over the past month have been regained over the weekend and BTC is now holding onto the support in the mid-$9,000 region. Massive bullish momentum out of China sent the king of crypto surging from below $7,500 to top $10,200 according to Tradingview.com.
BTC price hourly chart – Tradingview.com
The resultant correction has kept bitcoin in bullish territory and technical indicators are starting to reverse their bearish signals. There may be a larger pullback as profit-taking occurs but the major volatility is back in play and moves like these could send the digital asset to the moon in no time.
The huge spike has been observed by ‘Skew Markets’ as volatility reaches critical levels.
A look at Bitcoin’s Implied Volatility surface after this sharp rally:
Downward-sloping term structure: IV(ST) > IV(LT)
Negative skew: IV(Calls) > IV (Puts)
Could seem like a FOMO-regime vol surface but overall absolute IV levels far below all-time high. pic.twitter.com/nHIoHRdRlu
— skew (@skew_markets) October 28, 2019
Founding Partner Adamant Capital, Tuur Demeester, added that just nine more days of similar gains would send BTC to $50k.
“All else equal, Bitcoin only needs another nine days like today (+22%) to trade at $50k.”
Full-time trader ‘Crypto Michaël’ has compared current market conditions to those back in 2016 and stands by a prediction that calls for $20k BTC before the halving next May.
“2016 period and now are still comparable in which targeting $17,000-20,000 prior to halving is realistic.”
100-Week MA test completed and held, similar to beginning 2016.
Back above 200-Day MA & EMA, important indicators.
Holding trendline as well.
2016 period and now are still comparable in which targeting $17,000-20,000 prior to halving is realistic. pic.twitter.com/TPrQwJFxBX
— Crypto Michaël (@CryptoMichNL) October 26, 2019
FOMO is a very powerful sentiment and it is all coming out of China at the moment. The US has been a regulatory quagmire for digital assets this year and that inward-looking stance from policymakers is unlikely to change in the future. Beijing is also totally against decentralized money but its population is clearly not.
Maybe it is easier for Americans to accept regulatory directives from their governments; the Chinese, on the other hand, have had decades of oppression so banning bitcoin and crypto has had the opposite effect.
Beijing’s latest cryptography regulation approval and positive comments from President Xi have ignited the flame for Chinese traders who almost singlehandedly catalyzed the weekend’s 40% bitcoin surge. Economic tensions could also have driven many into safe-haven assets such as BTC.
A few more of these rallies would see BTC back at its all-time high in no time and from there $50k is not that far away.
Can bitcoin reach ATH before halving? Add your thoughts below.
Images via Shutterstock, BTC/USD charts by TradingView, Twitter: @skew_markets, @CryptoMichNL
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