Even though the bitcoin price looks very dull at the moment, with some having a negative outlook, there are still analysts who expect a green future. CryptoCon is one of them. In a recent tweet, he shows through a chart and indicator that “bitcoin is winding up like a strong spring.”
Bitcoin back in the channel
CryptoCon shared a chart showing the monthly envelope, an indicator based on a moving average. This involves plotting a top and bottom that can give traders an idea of the market oversold or overbought is.
The analyst’s chart shows that bitcoin traded far below the channel for a long time, but is now back in the channel. That could be a sign of an uptick, according to CryptoCon:
“2 Months ago, Bitcoin encountered resistance in the lower band of the Monthly Envelope
But now that the new month has started, the price is now resting on the lower band, on the inside of the channel.”
2 months ago, #Bitcoin was facing resistance at the lower band of the Monthly Envelope
But as the new month begins, price now rests on the lower band, inside of the channel
Bitcoin is winding up like a powerful spring, higher time frames couldn’t look more bullish! pic.twitter.com/GMKfwFcu2Z
— CryptoCon (@CryptoCon_) June 3, 2023
And so the analyst draws the conclusion that: “Bitcoin winds up like a powerful spring, higher time frames cannot be bullisher look!” Of course, it is important to emphasize that this is a single analyst’s view based on a single indicator. It is therefore not financial advice.
Bitcoin price to $110,000?
If we take a closer look at the chart, it can also be seen that the analyst has set a price target for himself. Based on past price increases when bitcoin price broke above the indicator, BTC could increase in value by 3 times.
With that, CryptoCon sets its price target at $110,000. Only time will tell if it actually comes to that. Earlier it was read in the bitcoin news that the ex-CEO of crypto exchange BitMEX expects the money printer in the United States to provide the next bull market.