Is Bitcoin About To Soar?

The crypto hype seems to be long in the distant past, eclipsed by buzz over artificial intelligence and machine learning.

But perhaps the nail is not yet in the coffin of the most high profile of all the cryptocurrencies, bitcoin. Recently, some well-known traders have been announcing their entry in the digital coin, the most notable of whom is Mark Minervini, multi-time US Champion trader.

Another trader has spotted an interesting pattern in bitcoin recently, and if he’s right, the sky could be the limit for the flagship cryptocurrency.

Key Points

• Bitcoin broke out technically on February 7 and since then has gone on a bull run.
• If the current technical pattern plays out, the upside may be even larger from now on.
• The upside for Bitcoin now is considerable based on the inverted head & shoulders set up.

Bitcoin Back In Vogue

Some traders just have an eagle-eye for what’s coming and what’s about to pop. Take Mark Minervini, who spotted the breakout in Nvidia before it rose massively in recent months.

He’s famous not only for his charting analysis and astute trading eye, but for winning the US trading championships on numerous occasions.

And recently he revealed that he had gained exposure to bitcoin via IBIT, which he entered on February 7, the day it broke out.

Perhaps unsurprisingly given his astute observations of market behavior, bitcoin has since taken off in a big way.

But it’s quite possible that if another trader is right, the best is yet to come. How high could bitcoin go?

Will Bitcoin Keep Rising?

According to one FinTwit trader, the odds of this being just the beginning for bitcoin are high. MerlinsCapital cites the following inverted head and shoulders technical chart pattern as exhibit 1 in the bull case for bitcoin.

The recent trading activity has all the hallmarks of a short-term bullish pattern and, if he’s correct, the upside is likely north of $60,000 per coin.

With confidence in government increasingly faltering, and inflation running rampant, it’s no wonder that traders are increasingly turning their attention back to bitcoin.

Though in the words of Warren Buffett it provides no useful value because it produces no cash flow, so too can gold be lumped into that same category yet both can act as trading vehicles to park capital when confidence in governments fall.

The inflation argument hasn’t played out so well for either gold or bitcoin. At a time in history over the past decade or more when money printing was excessive, gold in particular failed to skyrocket as many goldbugs forecast.

So while the link to gold rising and money supply increasing makes a lot of sense intuitively, history shows the rise of gold and likely bitcoin are more tethered to the faith, or lack thereof, that investors have in government’s ability to honor its obligations. As the rule of law breaks down, in particular, expect bitcoin to benefit as a place to store capital.