If you told investors in mid-January that Bitcoin would soon surmount $9,000, they might’ve thought you were crazy.
At the time, the cryptocurrency had just been rejected multiple times from key resistances in the high-$8,000s — namely the ever-so-important 200-day moving average (seen as a “make or break” level) and the horizontal right around $9,000 sharp.
But, trader NebraskanGooner predicted what came next, saying a tweet published on January 16th — a day when Bitcoin dropped by 4-5% from $8,800 to $8,400 — that he expects for the asset to not “go any lower than $7,800 or higher than $9,600 this month.”
I think #bitcoin is likely to range for the next couple weeks. I don’t see it going any lower than $7.8k or higher than $9.6k this month. Those are the upper and lower limits of this current HTF range I’m seeing
Even more likely it stays in a tighter range between $8.2k-8.8k.— NebraskanGooner📈 (@nebraskangooner) January 16, 2020
Bitcoin traded in the range the analyst described near perfectly, with BTC recently topping at $9,600 almost exactly and finding a local bottom around $8,000.
NebraskanGooner, a founder of crypto exchange Level, is looking to build on top of his prior success, on Monday releasing a “blueprint” as to how Bitcoin could trend in all of February.
Considering his track record, which has been underscored by an eerily accurate fractal he touts, his blueprint may be something to keep a close eye on.
Bitcoin Must Hold This Key Level, Top Trader Says
In a tweet outlining his blueprint for February, the trader provided a more neutral to bearish outlook for the cryptocurrency market, contrasting the exuberance being displayed by many traders at the moment.
NebraskanGooner said that Bitcoin likely put in a monthly high in $9,600, before adding that the range he mentioned in the January blueprint remains intact.
While the prominent commentator did admit that BTC is most likely to find a range, he did warn of Bitcoin “dumping hard” if it breaks below the $8,900 level and closes beneath it on a daily basis.
As to why $8,900 is so important, NebraskanGooner didn’t explain further. But, below you can see a TradingView chart from NewsBTC, which shows the $8,900 level as the white band.
The chart shows that for about a year now, the $8,900 level has been a key point for Bitcoin to hold, with the cryptocurrency finding resistance and support at this level on multiple occasions over the past 12 months.
A “hard dump” could see Bitcoin fall to the low-$8,000s or high-$7,000s, the analyst implied, meaning losses of 10 to 12% could soon be had.
Related Reading: Here Are 7 Reasons Why Bitcoin Could Explode Past $10,000
Can Bulls Maintain Crypto Market Momentum, Hold $8,900?
The question remains: can Bitcoin hold $8,900 as the aforementioned trader says bulls should?
According to a number of traders, it’s highly likely.
Prominent trader Filb Filb noted that Bitcoin’s charts across multiple timeframes paint a “pretty bullish outlook” for the cryptocurrency because “volume indicators are good,” not