Bitcoin (BTC) is currently trading at £4,921.77 ($6,440.97) today at 5.30pm GMT, according to CoinDesk.
Some cryptocurrency analysts now believe bitcoin may have found a base value of £4,581 ($6,000).
Basic trading theory states that a bear to bull trend is confirmed after the price disproves a “lower highs” pattern – a series of descending peaks.
Bitcoin consequently needs to exceed September’s high of £5,656 ($7,400) to confirm a major bullish breakout.
This means the flagship cryptocurrency needs to rally close to 16 percent from its current price for the bulls to claim victory.
Experienced traders, however, are always looking for patterns that might allow them to exploit an impending bullish reversal.
Mike Novogratz, CEO of Galaxy Digital, believes bitcoin will shake off its problems for good.
The crypto expert also predicted a return to £15,294 ($20,000) next year as institutional investors and crypto custodial service providers re-invigorate interest in cryptocurrency.
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Mr Novogratz said: “Bitcoin has to take out $6,800 (£5,200), and after that, we could end the year at $8,800 to $9,000 (£6,729 to £6,883).
“By the end of the first quarter we will take out $10,000 (£XX) and after that, we will be back to new highs — to $20,000 (£15,294) or more.”
Mr Novogratz believes many institutional investors will propel the market to new highs.
He did not mention whether the market reversal hinges on the US Securities and Exchange Commission’s (SEC) approval of a Bitcoin exchange-traded fund.
However, he suggested “institutional fear of losing out” will drive the market to new highs “just like there was in retail.”
Several analysts and influencers have issued ambitious Bitcoin predictions that have all proven to be wrong and as the end of the year approaches many have revised their predictions.
Ran Neuner, CEO of crypto investment Onchain Capital last week revised his Bitcoin prediction to “Nope, too complicated”.
Arthur Hayes, CEO of BitMEX, downgraded his 2018 bitcoin high forecast of £38,224 ($50,000) in 2018 to a more bearish view.
And Fundstrat analyst Tom Lee has also altered his bitcoin pivot points but he is one of the few analysts standing by his £15,285 to £19,107 ($20,000 to $25,000) prediction.
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As the bitcoin predictions and retractions continue, the SEC is expected to issue a statement regarding the status or their decision on nine Bitcoin-ETF applications.
SEC director William Hinman also confirmed the SEC will put out “plain English regulation” concerning the future of cryptocurrency initial coin offerings (ICOs).
The guidance will aim to help crypto developers better understand whether or not their tokens are securities.
Mr Hinman said: “If someone’s offering an instrument for money or other consideration to a third party, and that third party expects the offerer to generate a return or so something that will increase the value of the coin or token or whatever they want to call it, and there’s that expectation of return, we’re generally going to see that as a securities offering.”
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