- Bitcoin could hit $10,000 according to a popular trader
- Past data shows movements of 32% and 40% when Renko charts diverge from the oscillator
- At current prices, BTC has not hit the bottom
The new year marks the new beginning for Bitcoin (BTC). Where is its price now? And where is it heading?
As of writing, the most popular crypto still stagnates at $7,000 levels, and that has been the story for nearly two months, with just a few visits to $6,000 prices. There has been no major surprises and no fundamental data that would jolt investors into either buying or shorting the crypto, and any chance of a Santa Claus rally would have to wait until next December.
There are, of course, predictions made by well-known voices in the crypto-space. But evidently, most are biased, blatantly trying to spark massive speculation with hopes of getting their depressed BTC holdings in the green -- or possibly even make a fortune if the market respects their vertiginous projections.
When the investors get tired of the industry's wild and mostly unsubstantiated forecasts, they turn to technicals to at least get an idea of the most likely scenario that will play out based on similar occurrences in the past.
One of the charts that NewsBTC called the crypto world's attention to on Tuesday is made by a popular trader Cold Blooded Shiller. This trader who has almost 15,000 followers on Twitter is big on Renko charts, which is a kind of candlestick chart developed by the Japanese. Renko charts only record price movement (instead of price and the time interval), and a new block or candlestick is only formed when the price hits a certain amount.
Cold Blooded Shillers' chart also makes use of an oscillator to track its divergence in price. Typically, when price makes a lower low, and the oscillator makes a higher low, that indicates a bullish setup is in play. The chart showed two instances when price disagreed with the oscillator and became a herald for a rally of over 33% and 40%, respectively.
Now, a similar situation is happening again. The Renko chart shows the oscillator, and the prices are diverging. And if that's another movement of 40% as with last time, that would be equal to a BTC price in upwards of $10,000, NewsBTC noted.
But even if a rally is a possibility at the moment, Cold Blooded Shiller doesn't think that this marks the bottom for BTC as it still is constrained in a descending channel that for a bottom to be called, prices would have to break above the channel with a significant influx of volume. So, with this analysis, those who clamor for BTC to reach exorbitant prices this year would have to wait.
Past data shows movements of 32% and 40% when Renko charts diverge from the oscillator
At current prices, BTC has […]