Sun. Aug 7th, 2022

Bitcoin managed to rally above the key $7,500 level overnight, as the technical signs aligned and market bulls enjoyed their “I told you so” moment. The rally was impressive, sending bitcoin from a multi-month low in the $6,800 range to nearly $7,700 at yesterday’s peak, propelling the broader crypto market’s value to more than $205 billion.

Mati Greenspan, Founder of Quantum Economics, pointed out the inverse head and shoulder pattern in the charts, which based on the reaction of his followers is a bullish set-up for the leading cryptocurrency. Greenspan noted in a note to clients that while past performance isn’t an indication of future results, things are looking up:

“[It] does seem that if we can get a clear break of that neckline at about $7,500 it will almost certainly turn many of the bears into bulls.”

 

Source: Twitter

As TrustedBrokerz previously reported, $7,500 is a key level for the bitcoin price. In recent days, Galaxy Digital CEO Mike Novogratz, who is focused on the charts, shared that in order for the BTC price to break out of its rut, it needed to close above $7,500 by Wednesday. Despite headwinds that included a hack of South Korean cryptocurrency exchange Upbit, the bitcoin market managed to rise to the challenge.

One of the catalysts in the market appears to be a ramp-up in trading volume among institutional investors, an encouraging sign for all. Bakkt, which launched in September, said its bitcoin futures contracts hit a record high of more than 4,400 contracts on Wednesday, which surpasses its previous peak by a whopping 60%. After getting off to a slow start, Bakkt continues to set record after record, and the bitcoin futures exchange expects the momentum to persist.

 

Source: Twitter

For instance, with the launch of Bakkt options contracts around the corner, institutional investors could be just getting started.

Bitcoin Price Outlook

With just weeks left in 2019, all eyes are on where the bitcoin price is headed in the short-term. If history is any indication, the end of the year could play out well for not only bitcoin but the broader crypto market. Pocket Node Co-Founder Crypto King reflected on the last bull market, tweeting:

 “In 2017 BTC mooned literally from Thanksgiving straight through Christmas.” 

If history repeats itself, alt season could finally be in sight. In the 30 days following bitcoin’s 2017 bull-run, Crypto King points out that altcoins saw their values balloon by 10x, 20x, and even 200x.  Today the crypto market has the benefit of a bitcoin halving event in sight in the coming months. And according to Mati Greenspan, the best is yet to come:

“With the bitcoin halving event coming up in 168 days, 11 hours, and 29 minutes from the time of this writing, what people will want to know is: is it priced in yet? My answer is undoubtedly not.”

Source: Twitter

Something to keep in mind is that in early August, Litecoin experienced its second halving event. The sixth-biggest cryptocurrency based on market cap has seen its price about slashed in half since then, in what’s been a rocky few months for the market. But the charts tell the story that the bitcoin price historically gets a pop leading into the halving event before fully unleashing the bulls post-halving. Bitcoin has grown leaps and bounds since the last two halving events, and the dynamics surrounding bitcoin mining continue to evolve. Time will tell what the May 2020 halving brings to bear. For now, the bitcoin price appears to be out of the woods.