Over the holiday season, Bitcoin (BTC) has stalled in the low-$7,000s, finding itself stuck between a rock and a hard place. Although some say that this is indicative of an impending return to the $6,000s, then the $5,000s, a growing sentiment suggests the leading cryptocurrency could trade in the $8,000s and $9,000s in the coming 30 days.
Related Reading: Why Bitcoin Network’s Record 2019 Is Bullish For the Crypto Market
Bitcoin to Top $9,000 By End of January?
Without fail, the first week of every January over the past three years has seen the price of Bitcoin explode higher, as noted by trader SalsaTekila. in 2017, BTC gained 21.9% during the first seven days of the year; in 2018, it was 24.3%; and last year, it was 11.8%.
The same pattern playing out for Bitcoin yet again could mean that the asset will surge towards the $8,000s and $9,000s.
While this positive directionality for January may seem to be a simple coincidence, it is known there are be end-of-year sell-offs in financial markets due to tax write-offs (search up “The January Effect”), not to mention that cryptocurrency exchange SFOX found that Bitcoin’s directionality is generally positive in and around holidays.
2017: 21.9% scam punp first week of the year.
2018: 24.3% scam punp first week of the year.
2019: 11.8% scam punp first week of the year.
— SalsaTekila (JUL) (@SalsaTekila) December 30, 2019
It isn’t only a historical trend that suggests Bitcoin is going to have a positive January.
Other Analysts Give Credence to Bull Thesis
Su Zhu, the chief executive officer of forex and crypto fund Three Arrows Capital, recently remarked on Twitter that he believes Bitcoin’s price outlooking heading into 2020 is looking rather bullish.
The prominent industry commentator, who has penned some stellar articles about the Bitcoin space for his blog, noted that per his analysis of the BTC/USDT trading pairs and their premiums to BTC/USD markets and the overall price action with Bitcoin, there are “clear signs of accumulation and money flow back into risk.”
He thus concluded that he wouldn’t be surprised to see the leading cryptocurrency surpass $9,000 — 25% higher than current prices — before the end of January.
But wait, there’s more.
Per previous reports from this outlet, Full-time trader Cold Blooded Shiller recently posted the below analysis of Bitcoin’s Renko candle chart, which shows the price action over the past three years.
While there is little on the chart, the trader drew attention to two previous bouts of price action in BTC’s history, during which the price rallied by 32% and 40%, respectively, after a bullish divergence was formed between his indicator and the price.
The same divergence is forming yet again, implying that BTC could soon rally by up to 40%, which would mean the price of the asset would take $10,000.
Featured Image from Shutterstock