Bitcoin has been on a wild ride over the past few months, with much of that time looking like a strong bear run for the world’s number one crypto currency was guaranteed for at least the early weeks of November. However, thanks to the monthly close for October, a renewed bull run seems very much intact. Bitcoin is set for at least one more rally this year and Bitcoin’s bull run moves forward, with analysts predicting prices exceeding the $14,000 mark.
At the start of 2019, during the first three months, Bitcoin was trapped inside of a tight trading cycle. We saw limited volatility with slow moves in either direction. Because of the uneventful three months can be pinned to Bitcoin’s major holders buying up access coin from investors with cold feet.
The next three months, however, were completely different story. We witnessed Bitcoin’s price shooting far beyond what many expected. Prices reached as high as $14,000 per coin, although the Bull Run was put to stop at that ceiling. Of course, excitement amongst crypto currency enthusiasts also peaked out during Bitcoin’s climb, encouraging a highly volatile situation for the popular coin.
The drastic increase in value over just a few short months also had another effect on both Bitcoin in the crypto currency market. Strong levels of enthusiasm led to support for Bitcoin that hadn’t been seen in quite some time. There is so much support, in fact, that we saw a bullish flag pattern form on the charts signaling good things to come.
The bullish flag pattern, however, was seriously tested during the following three months. Each month in the third quarter threatened to negate the Bull Run promised by the flag pattern with a red candle. October is the first month in the last four that ended in the green. October’s green candle has confirmed that the bull flag formed months ago is still following form. Analysts are currently putting the breakout price at figures just over $14,000.
A Fresh New Breakout Price
In order to understand why the new breakout price is set above $14,000, we have to look at the bull flag distance in comparison with the resistance breakout. The distance between the breakouts and the top of the bull flag was more than $6500. So, looking at Bitcoin’s current prices and taking into consideration the $6500 difference between the previous breakout and the top of the bull flag, we are looking at a new target well above $14,000.
Whether the target will be met is certainly no guarantee. Although the current situation for Bitcoin seems very positive, its push into a strong Bull Run is highly dependent on the coin’s ability to maintain enough support to keep things moving in the right direction. If October’s growth and support that led to a monthly green candle does not continue, and if the next monthly candle is in the red, a serious Bear Run will ensue.