Bitcoin has undergone an extremely strong rally over the past few weeks that has brought the coin as high as $18,900. The coin is up around 70 percent in the past five weeks, making it the best-performing macro asset over that time frame.
But just weeks ago, few investors thought it would move this high and this fast.
When the coin began to consolidate at $13,000-14,000 around two weeks ago, many were sure that a retracement to the $12,000 range was on the horizon. To some more conservative analysts, Bitcoin had already rallied too fast.
But one trader predicted a move to $18,500. This was “Bitcoin Jack,” a pseudonymous analyst that has accurately predicted every major macro move since the March crash.
On Mar. 13, literally hours after BTC hit $3,500, he predicted a V-shaped reversal to $10,000 by May or June. And more recently, he made the call to $18,500 as aforementioned. He bases his predictions on a number of technical trends, including Elliot Wave and market cycles, along with fundamentals.
Bitcoin Jack today announced that he is looking to short BTC for the time being, arguing in a recent tweet that he thinks a pullback will happen eventually.
He shared the chart seen below recently, which shows that Bitcoin is in the midst of breaking below a parabolic uptrend it has been situated in since the drop in September. The loss of a parabolic uptrend often indicates in crypto that a 60-80 percent retracement of the parabola will take place.
This would mean that Bitcoin moves to the $13,000 region in the weeks ahead.
Though due to there being an underlying spot institutional bid, it is unclear if the parabolic pullback will play out as many expect.
I am slowly starting to build a short position pic.twitter.com/UvlhhssSkF
— //Bitcoin ack (@BTC_JackSparrow) November 22, 2020
Still long-term bullish
The same trader remains long-term bullish on Bitcoin despite these short-term setbacks.
He shared the thread seen below recently, outlining some of the many fundamentally positive trends for the cryptocurrency space that should fuel a longer-term bull market.
These include but are not limited to:
- JPMorgan being bullish on Bitcoin
- Billionaires buying BTC, such as Paul Tudor Jones, Stanley Druckenmiller, and Michael Saylor
- PayPal launching support for cryptocurrency purchases and soon, cryptocurrency e-commerce transactions
- Grayscale buying a large amount of BTC on behalf of its institutional clients
- China mentioning Bitcoin on state television in a positive light
- The amount of BTC inactive reaching all-time highs, suggesting increased holding activity by long-term investors
- The fiat supply increasing at a rapid clip due to monetary stimulus in response to the pandemic
So let's summarize
-JPMorgan bullish on BTC
-Billionaire tech minds love cyberhornets
-and buy loads
-PayPal launches crypto support
-Iran adopts Bitcoin as reserve asset
-Grayscale keeps buying chunks
-BitMEX, OKEX, KuCoin news no effect
-Halving supply shock
— //Bitcoin ack (@BTC_JackSparrow) November 5, 2020
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