KEY POINTS

  • Bitcoin’s consolidation at $9,000 for two months provided the volume to ultimately break past $10,000
  • Bitcoin failed to break past $12,000 in the last 16 days because of intense selling pressure
  • A clear ascending triangle is forming in the daily chart and a break upside could turn $12,000 as the next key support

If Bitcoin breaks past $12,000, there is a 30% chance that its price will hit $17,000 by the end of this year, said Cane Island Alternative Advisors' Timothy Peterson.

Peterson's comment came following a recent report that suggested a break past $12,000 will guarantee that Bitcoin will move toward $15,000 to $17,000, which would be just $200 away from its all-time high closing of $17,200 in 2018.

In another tweet, the analyst said the probability of Bitcoin hitting all-time high this year is between 10% to 18%. This was based on his research, titled “Bitcoin Spread Like a Virus,” which said Bitcoin’s long-term price is affected by its long-term growth rate. While there was wild volatility in the crypto markets, Peterson said price will ultimately tend toward value and the number of users will drive the price, which will follow a growth function.

Bitcoin failed to break past $12,000 in the last 16 days. On two occasions, it was met with intense selling pressure, pushing the price below. In fact, on Aug. 2, the selling pressure was so intense that Bitcoin went down to sub $11,000 before settling at $11,071. On Aug. 12, the selling pressure materialized the day after as the price went back to $11,392. 

Since then, Bitcoin slowly crawled up and is now trading at $11,833. In the daily chart, a clear ascending triangle can be seen, a resolution of which could be an upside that will turn $12,000 as Bitcoin’s new support, said Ethereum World News.

Another analyst, named MagicPoopCannon, also said a breakout above $10,600 could likely make Bitcoin go past $14,000 all the way to $17,200.

Bitcoin hitting $17,000 could only happen if $12,000 is ultimately broken. For it to break, some analysts think a consolidation at the current levels should first take place. According to a recent report, Bitcoin's consolidation at $9,000 for two months provided the momentum to take out $10,000 with considerable volume on July 27.

Bitcoin was created in 2008 Bitcoin was created in 2008 Photo: AFP / JACK GUEZ