Just hours after Forbes claimed the Bitcoin bubble had burst, BTC made a stunning turnaround. One analyst is now predicting a 153% rally.
The King of Crypto had fallen around 30% over the space of a week from highs of $13,868 to lows of $9688.
However the Bitcoin price gained almost 20% today, trading as high as $11,525 and sparking predictions of a further rally of more than 150%.
Those gains had pulled back at the time of writing to around 13% with the price just above $11,000.
Unfortunate timing for Forbes
The reversal is a case of unfortunate timing for Forbes’ Billy Bambrough who had just published an article on the steep correction: “Bitcoin Bubble Bursts As Ethereum, Ripple’s XRP And Litecoin Prices Crash–Here’s Why”
“The sudden Bitcoin, Ethereum, Ripple XRP, and Litecoin price sell-off comes after warnings bitcoin is heading for a “violent breakdown” and technical data that showed a strong sign of buyer exhaustion across Bitcoin and cryptocurrency markets,” Bambrough wrote, quoting crypto analyst Joe Saz saying:”I don’t typically have a red flag emergency but it’s looking very bad right now.”
$BTC: Reward of buying pullbacks
Previously examined how Bitcoin often experienced 30%+ pullbacks during last uptrend
But we didn't discuss how buying these pullbacks can reap rewards
The average gain after a 30%+ pullback was over 153% profit before the next strong pullback pic.twitter.com/vy08Dx5XbU
— Josh Rager ???? (@Josh_Rager) May 23, 2019
The Bitcoin price surge immediately cut through the gnashing of teeth over the correction and flipped the switch to blind optimism.
Josh Rager says history suggest a major rally up to 153%
Technical analyst Josh Rager said if history is any guide, a steep correction is often followed by a major rally.
“BTC has just hit over 20% gain in less than 24 hours. Looking extremely bullish and could be heading towards $11,760 (1 day resistance) Wanting to go to sleep but it’s hard to rest when Bitcoin crushes resistance after resistance on lower time frames.”
“We had our 30% pullback so what’s next? History says that price consolidates followed by an average gain of 153% before the next big pullback There are great rewards for buying pullbacks in a bull market.”
Brandt says the correction wasn’t so bad anyway
Veteran trader Peter Brandt pointed out the price correction of 30% looked mild compared to at least five more severe corrections between 2015 and 2017 where BTC pulled back as much as 41.4%
— Peter Brandt (@PeterLBrandt) July 2, 2019