Bitcoin might have halved in price since hitting its high in December of around $10,000, but it’s no less popular. That much was obvious seeing comedian John Oliver dedicate an episode of Last Week Tonight Sunday on crypto or as he described it: “Everything you don’t understand about money with everything you don’t understand about computers.”
The crypto gang on Reddit cheered “HODL,” a slang term among enthusiasts for “hold all,” thinking the attention would be good for the price of bitcoin. Looking at the price of bitcoin now, around $9,200, up 0.66% since Sunday, they weren’t wrong, but technical analysis shows that bitcoin was signaling “buy” starting early March.
As long as the price of bitcoin stays above the $8,300 level, its trend will remain positive, wrote Zev Spiro of Orips Research. “A buy signal occurred on Friday as prices tested and held above trend support,” Spiro said. With prices now testing the higher end in the $9,200 level, the technical analyst expects to see a minimum of $17,252 and possibly a spike to $29,000 — that’s 45% higher than Fundstrat research head Thomas Lee’s price target for $20,000 by the middle of the year.
Chartists have been among the first to tackle bitcoin, but other tools are coming to help track sentiment. Thomson Reuters announced Monday that it launched a new data feed designed to show how investors feel about crypto. Its MarketPsych Indices use natural language processing algorithms to mine news articles and social media sentiment for “psychological insight” and “market foresight.”
And they call technical analysis voodoo.