After getting pummeled for much of 2018, Bitcoin has staged a nice rally off of the lows, but what could be next?
Bitcoin got as low as about $6,500 several times over the last month, but has since rallied all the way back up to get right near $10,000 before pulling back.
That is nice and all, especially if you were a buyer at $6,500 and a seller at $10,000, however, where do prices go from here?
One of my favorite technicians, Carter Worth, was on CNBC's Fast Money last night and he says a big move is coming in bitcoin, and he is betting that big move is up.
Where does Carter Worth say prices go next?
If you are not familiar, Carter Worth is known for being a very good technical analyst, in fact his nickname is "The Chart Master" and he is featured on CNBC just about every week.
Though not always right, he is one of the best chart guys in the world.
Regarding Bitcoin, he says that the price is currently breaking out of a rather larger wedge patter.
To get that pattern, Carter basically drew a trend-line line from the lows of 2015 all the way up until now, and then a drew a line from the highs of 2017 until now.
The resulting pattern looks like a wedge as shown above, showing higher lows and lower highs:
What does this mean?
In his eyes this means that there is some indecision going on. Some people say it's going to the moon, others say it is going to zero.
The wedge is a representation of that indecision.
However, just recently the prices have broken out of that wedge to the upside, a very good thing according to Carter.
Which means that the next move could indeed be higher as prices get resolved to the upside.
The interesting thing about wedge patterns is that they often resolve violently. Meaning that when a direction is ultimately decided the move is often a significant one.
Which means this really could have some serious legs.
Another reason Carter thinks the next move is up:
Carter also noted that when prices retested those February lows in early April, they didn't get all they back down to the lows.
Instead they held up right above there and then turned back up.
Another sign to him that says the path of least resistance from here is up.
Carter concluded by saying it looks to him like the next move is higher for bitcoin, if he had to be short or long here, he would be long for sure.
The full video can be found here:
https://twitter.com/CNBCFastMoney/status/989981861349912581
- CNBCFastMoney
Stay informed my friends.
