Bitcoin Could Reach $5,000 By May
For the first time in a blue moon, the cryptocurrency market’s prospects have seemingly begun to look bright. Analysts have acknowledged this, and have begun to express cautious optimism towards Bitcoin (BTC) and where it could head next.
Prolific trader Filb Filb recently took to Twitter to explain why BTC hitting $5,000 by May of this year is entirely possible.
He notes that a number of technical measures have started to turn in Bitcoin’s favor. Filb specifically drew attention to the 12-hour Moving Average Convergence Divergence, which has begun to trend positive above zero. The analyst also touched on Chaikin Money Flow (CMF), which measures buying and selling pressure, which has begun to signal that there is underlying buying pressure in BTC markets.
He adds that over recent days, Bitcoin has begun to test a “macro 14-month resistance” downtrend, and could break into higher lows if it surpasses that level, which would then turn into support. A move above this level, which would push BTC into a “huge void” of volume, meaning that rallies and drawdowns could be accentuated with little-to-zero volume, could mean that Bitcoin could hit $5,000 by May.
But, it may not be that simple. Filb writes that for this bullish formation to hold, BTC will need to ensure it doesn’t break under $3,722.5 (the 50% Fibonacci level) and $3,400, as that would imply that lower lows for this nascent market would be inbound.
Filb’s Bullish On BTC In The Long-Term Too
Filb’s most recent chart is the next in a line of many optimistic quips. Just as he is bullish in the short-term, the prominent trader is also hopeful for the medium and long-term prospects of this asset class.
Per previous reports from Ethereum World News, the popular Twitter commentator took up a bet with Leah Wald, a cryptocurrency trader that subscribes to Tyler Jenks’ Hyperwave theory. Wald believes that BTC will hit $1,500 before $6,500, while Filb is sure that more likely than not, the asset reaching those levels are near-impossible. Thus, Wald and Filb both put up one BTC as a wager.
Long-term, he expects for the flagship cryptocurrency to break out of its six-digit cell. In an extensive thread posted just weeks ago, Filb explained that Bitcoin reaching a price point of over $333,000 isn’t all too illogical. He wrote that per a “long form valuation” chart for Bitcoin, which took adoption, transaction penetration, supply, among other factors into account, the asset could eventually begin to rally parabolically. He adds that if BTC follows the Internet industry’s historical growth cycles of staggered booms and busts, $1,000,000+ could be in Bitcoin’s long-term cards.
Heads up: Since writing this article, TradingView, the platform that Filb hosted his chart on, has taken down the post. It isn’t clear why this is, as TradingView cited a violation of a “house rule.”
Title Image Courtesy of Icons8 Team Via Unsplash
