For the umpteenth day in a row, Bitcoin (BTC) continued to press higher on Thursday, pressing higher from a low of $9,150 to $9,550.
This latest leg means that the leading cryptocurrency is up 48.8% since the bottom in mid-December, and is up 17% in the past week alone.
Although the bullish momentum is stalling, with the price of BTC failing to make any notable forays above the key $9,500 resistance that marked the top of a previous rally in 2019, analysts say there remains evidence suggesting prices still have upside potential.
Fundamentals Continue To Favor Bitcoin
Yesterday, cryptocurrency content creator and analyst The Moon noted that per data from Blockchain.com, Bitcoin’s hash rate — the metric of computational power being allocated to processing transactions — has “JUST HIT” a new all-time high: just over 123 exahashes per second, or 123,011,832 terahashes per second.
This comes just a week after the previous all-time high of 120 exahashes was established.
The #Bitcoin hash rate JUST HIT a new ALL-TIME-HIGH!
A whopping 123,011,832 TH/s!!!
The $BTC fundamentals are screaming for a huge bull run leading into the halving! 🚀
— The Moon (@themooncarl) January 30, 2020
The surging hash rate confirms that the so-called “miner capitulation” — when Bitcoin and other cryptocurrency miners stop their operations due to operating expenses being unsustainable — is over.
Moreover, it shows that Bitcoin miners — which many believe to be one of the main factors in the crypto market’s day-to-day price action — are extremely confident about the future of digital assets.
Not to mention, CryptoKea recently observed that the search volume for the term “Buy Bitcoin” has hit a seven-month high, per data from Google Trends.
He claims that this is a clear sign the “long-term upwards trend is undeniable.” Although it isn’t clear how exactly the searches for this term correlate with price action, it is clear that investors are still interested in throwing capital towards Bitcoin.
Eerily Accurate Analysts Agree Upside Is Imminent
Along with these factors, some of this space’s most accurate analysts have all agreed that Bitcoin’s trajectory according to technical analysis suggests that more gains are imminent over the coming weeks.
Prominent Bitcoin analyst Financial Survivalism (also known as Sawcruhteez) — who at the start of January said that he expects for BTC to surge to $9,000 by mid-January — posted the below tweet, suggesting that BTC has formed an impeccable cup and handle breakout pattern.
The cup and handle, for some context, is a bullish chart pattern marked by two rounded bottoms at two different levels that most often sees assets strongly break higher from a local bottom.
— Financial Survivalism (@Sawcruhteez) January 29, 2020
Per the analyst, this specific cup and handle has a targeted move of around $11,675 — 23% higher than the current price of $9,450 — which should mark the first higher high on the weekly chart in seven months should Bitcoin reach that price level.
There’s also optimistic sentiment touted by Dave the Wave — a pseudonymous trader who in the middle of 2019 said that the leading cryptocurrency would tumble towards $6,400 (It did just that).
Dave wrote in the below tweet that BTC is currently trading in a “mini mini parabola” pattern, which suggests that the cryptocurrency will hit $11,500 by mid-February.
Shorter term speculation thread.
Hello, the mini mini parabola still alive…. If price did take off to the upside here, resistance at 11.5K on the basis of the triangle forming… pic.twitter.com/r17pxtpKsb
— dave the wave (@davthewave) January 30, 2020
And who could forget Filb Filb, the trader who called Bitcoin’s $3,000 bottom in 2018 then the crash to the $6,000s last October?
He wrote in a recent newsletter that he expects for BTC to trade near $12,500 by the time of the block reward reduction in May 2020, citing another bullish chart pattern that suggests an explosive move for BTC is right on the horizon.
The seeming similarities in the analyses of Dave, Sawcruhteez, and Filb adds credence to their targets.