In early May, we accurately predicted that bitcoin would trade above $11,500 before the end of 2019. The leading cryptocurrency breached that level last month, recording a fresh yearly high above $13,000. Since then, BTC has been correcting and is back trading near $10,000.
While many see the retracement as the end of bitcoin’s parabolic rise, our analysis shows that the number one cryptocurrency is simply consolidating gains as those who caught the bottom take profits. However, once this round of selling is over, we are confident that bitcoin will once again trade above $11,500 and rip to a new all-time high at $20,000.
Bitcoin Price Could Sink to $7,400 as Traders Secure Profits
A quick look at bitcoin’s hourly chart tells us that the cryptocurrency is printing a falling wedge. This is a bullish continuation pattern that suggests the resumption of the strong uptrend once profit-taking is over.
The pattern aligns with our initial bottom-picking price target of $9,000. Support of $9,000 is currently our range midpoint from the macro perspective. At that point, bitcoin would have shed over 35 percent from the 2019 high of $13,880.