- Bitcoin price recovering, may clear $6,000
- Jihan Wu, the former CEO of Bitmain is a billionaire
- Transactional volumes low, must spike above 440k countering Q4 losses
With newfound financial weight, Jihan Wu can now move towards achieving his goals. In the meantime, Bitcoin (BTC) prices stand to benefit. Should buyers have the upper hand, any surge past $4,500 will be trend-defining in short to medium term.
Bitcoin Price Analysis
Rumor from multiple sources, insinuates that Jihan Wu, credited for backing Bitcoin Cash during the last hash war to the detriment of asset prices, will in coming days cut ties with Bitmain.
Nothing is yet to be confirmed but with enormous losses, downsizing and a general decline in Bitcoin prices, the chipset behemoth like all crypto firms, is under duress and may let go of Jihan. Already he has the financial muscle to do whatever he likes.
At a tender age of 33, Forbes ranks Jihan as one of the youngest billionaires under 40 with a net worth of $1.5 billion.
What we have in the weekly chart is a beautiful sight. After five months of severe draw-down, Bitcoin (BTC) is recovering—although not at a rapid phase as expected. However, at this pace, prices are likely to print above $4,500. It all depends on the underlying momentum and how bulls will flow back once key resistance levels no longer hold.
Technically, bulls appear to have the upper hand. While the bear bar of the week ending Nov 25 is conspicuous and could trigger sells as Bitcoin trade within a bear breakout pattern, it is the rejection of lower lows and renewed interest of week ending Dec 23 that is trendsetting. Prices are moving within this bar, and in an effort versus results point of view, that is bullish.
At the moment, it is a series of tight ranging, higher highs with firm anchors rooted at week ending Feb 1 that is important for our analysis. Like in all our previous BTC/USD trade plans, risk off traders can take advantage of this bullish candlestick arrangement and load up on every dip. First targets remain at $4,500, and this plan is applicable as long as BTC prices are trading above $3,500.
Week ending Nov 25 is our base bar. While prices recover, volumes/participation must also expand at a faster rate eliminating the disparities between Q4 average volumes—150k and those of Q1 2019—120k. For a trend resumption and cancellation of late Nov 2018 draw-down, Bitcoin prices must rally above $4,500 and $6,000 with high transaction volumes above 434k of the week ending Nov 25. That’s almost three times the recent averages. Only that will invalidate the possibility of bears ushering in bulls aiming at $11,000.
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