After “trapping” leverage traders, Bitcoin (BTC) is still on track to reach $90,000 in the coming weeks.
Decentrader, a trading platform, highlighted popular sentiment on BTC price action in its most recent market update on November 12.
High timeframes “remain bullish,” according to the latest update.
Despite losing $4,000 in a single day on Wednesday and trending sideways since, many analysts argue that Bitcoin is far from bearish.
With short-term conditions punishing leveraged long traders but funding rates remaining high, hodlers may face more pain before the recovery begins.
Decentrader believes that when it does, new all-time highs will be set.
“We remain bullish on high time frames and continue to expect price to rally up to the $85,000 – $90,000 region in the coming weeks, which aligns with the 1.618 fib retracement level,” according to the update.
An accompanying chart depicted the target as well as nearby support levels, with the closest focusing on an area around $59,000, which separate research suggests could act as a strong line in the sand for bulls.
“When we compare this cycle from the most recent halving date to previous cycles, we can see that we have yet to see a final parabolic run-up,” Decentrader added.
While not exactly identical to either the 2013 or 2017 bull runs, Bitcoin is still laying the groundwork for a “parabolic run-up.”
“By overlaying the cycles in this manner, we can see how the current cycle is not directly similar to either of the previous cycles, but rather a combination of the two.” “With a more muted potential double-top playing out than in 2013, and less consistency than in 2017,” according to the update.
“As we attempt to break out of the previous all-time high from May of this year, it raises the prospect of a potential parabolic run-up, similar to what we saw in the late stages of previous bull runs.”
Taproot meets with an ETF decision Sunday
The next few days could be crucial.
Not only will the final decision on whether to allow the first spot price U.S. exchange-traded fund application be made on Sunday, but Bitcoin’s Taproot soft fork will also be locked in.
While the short-term impact of an ETF rejection may be negative for BTC/USD, 2017 demonstrated that major protocol upgrades have a cathartic effect.
Taproot is the largest upgrade since Segregated Witness (“SegWit”) launched four months before that year’s $20,000 cycle highs.
“The last major upgrade to Bitcoin was the Segwit upgrade in August 2017.” “At the time, the price of Bitcoin was $4000, and it went on to rally up to nearly $20,000 in the following four months,” Decentrader said.
“Will there be a similar rally this time?” Given the current bullishness of many macro indicators and the rush of new money into crypto, it is certainly possible.”