By Laura Sanchez
Investing.com – “According to the first law of physics, a moving object will continue to move until an outside force affects it,” wrote Wall Street stockbroker Martin S. (Buzzy) Schwartz in his book “Pit Bull”, recalls Coindesk.
Soaring into double digits this Thursday and so far in 2023 it’s up nearly 50%, hitting a six-month high of $24,900, and one analyst expects the bullish move to continue which could double the value of in the coming months.
“Bitcoin is coming out of a long base formation. There’s a saying that the bigger the base, the higher the space,” he said. CoinDesk William Noble, director of research at Emerging Assets Group and former analyst at Goldman Sachs (NYSE:) and Morgan Stanley (NYSE:).
“Bitcoin may go from consolidation to another parabolic move back to $56,000,” Noble said, having correctly predicted the cryptocurrency’s late 2020 rise from $20,000 to $40,000.
“Going parabolic” is a phrase often used in the cryptocurrency market to describe an expected impulsive upward move with limited drawdowns.
Bitcoin’s recent bullish rally follows an extended period of sideways trading in the depths of the bear market around $18,000, or the base pattern, as Noble puts it. The widely followed RSI (relative strength index) momentum indicator diverged higher on the weekly chart, confirming the end of the downtrend, notes Coindesk.
A bullish RSI divergence occurs when the indicator does not match the new low of the price, as seen in November 2022. This is a sign that the bears are losing power and the bulls are gaining strength.
The strength of bitcoin drives the rest of the major crypto assets. and are up 8% at this time.