{"id":128746,"date":"2020-03-24T13:00:12","date_gmt":"2020-03-24T13:00:12","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=128746"},"modified":"2020-03-24T10:47:54","modified_gmt":"2020-03-24T10:47:54","slug":"legendary-bitcoin-trader-makes-case-for-8-5k","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/legendary-bitcoin-trader-makes-case-for-8-5k\/","title":{"rendered":"A prominent trader makes the case for $8.5k Bitcoin before making new lows"},"content":{"rendered":"<p>A prominent trader known as PentarhUdi accurately called the drop from $10,000 to sub-$6,000 and has called many full Bitcoin market cycles in the past several years, believes <a href=\"https:\/\/www.cnbc.com\/2020\/03\/24\/bitcoin-btc-cryptocurrency-prices-rise-despite-us-stocks-selloff.html\">BTC is headed to up to $8,500.<\/a><\/p>\n<p>When the Bitcoin price initially hit $5,200, the trader said that the dominant cryptocurrency is likely to move towards the 200-day simple moving average (SMA), found above $8,000.<\/p>\n<h2>$8,500 Bitcoin target matches with Fed's aggressive fiscal policy<\/h2>\n<p>In the past 24 hours, the Bitcoin price has surged by more than 15 percent against the USD following the Federal Reserve's decision to <a href=\"https:\/\/www.politico.com\/news\/2020\/03\/23\/fed-coronavirus-economy-143793\">essentially carry out unlimited quantitative easing (QE).<\/a><\/p>\n<p>The <a href=\"https:\/\/www.marketwatch.com\/story\/fed-saying-aggressive-action-is-needed-starts-unlimited-qe-2020-03-23\">Fed said that it will not hold back<\/a> in acquiring U.S. government bonds and mortgage-backed securities. The Dow futures indicate an upsurge of over 800 points at open, as the stimuli from the Fed alleviates pressure from equities.<\/p>\n<p>On March 19, when the Bitcoin price was still trading below $6,000, Pentarhudi predicted that the price of BTC should recover to up to $8,500 after touching the weekly 200 simple moving average at $5,200.<\/p>\n<p>The Bitcoin price was expected to see a firm rebound after reclaiming the $5,200 support, and the macro trend of the broader financial market led to increased sentiment towards cryptocurrencies.<\/p>\n<p>The trader <a href=\"https:\/\/www.tradingview.com\/chart\/BTCUSD\/qNy2lBH5-Bearish-outcome-of-previous-ideas\/\">said<\/a>:<\/p>\n<blockquote><p>&#8220;This should bounce up from weekly sma 200 (~5200) up to daily sma 200 (~8500). Break up of upper trend line invalidates this bearish count. I remind this is hypothetical bearish outcome of previous published ideas.&#8221;<\/p><\/blockquote>\n<p>On February 10, when the Bitcoin price was just hovering above $10,000, Pentarhudi said that a pullback to $5,800 is the logical next target given the historical cycle of Bitcoin. The move to the downside was overextended as <a href=\"https:\/\/cryptoslate.com\/economic-downturn-erases-trillions-from-stock-market-shows-just-how-tiny-crypto-truly-is\/\">panic ensued in the global financial market<\/a>.<\/p>\n<p>He noted:<\/p>\n<blockquote><p>&#8220;If this idea is correct, price should fall from current levels down to weekly MA 200 in term of 1-3 months. Breaking upper bold red line (now or later) will open door to long bull run. Price is long-term bullish while it stays above weekly MA 200.&#8221;<\/p><\/blockquote>\n<figure id=\"attachment_128725\" aria-describedby=\"caption-attachment-128725\" style=\"width: 480px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/cryptoslate.com\/economic-downturn-erases-trillions-from-stock-market-shows-just-how-tiny-crypto-truly-is\/\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-128725\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/bitcoin-small-1024x538.jpg\" alt=\"Economic downturn erases trillions from stock market and shows just how tiny crypto truly is\" width=\"480\" height=\"252\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/bitcoin-small-1024x538.jpg 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/bitcoin-small-300x158.jpg 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/bitcoin-small-768x403.jpg 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/bitcoin-small.jpg 1200w\" sizes=\"(max-width: 480px) 100vw, 480px\" \/><\/a><figcaption id=\"caption-attachment-128725\" class=\"wp-caption-text\">Related: <a href=\"https:\/\/cryptoslate.com\/economic-downturn-erases-trillions-from-stock-market-shows-just-how-tiny-crypto-truly-is\/\">Economic downturn erases trillions from stock market and shows just how tiny crypto truly is<\/a><\/figcaption><\/figure>\n<p>In the short-term, both equities and Bitcoin are anticipated to <a href=\"https:\/\/cryptoslate.com\/top-analyst-heres-the-simple-path-forward-for-bitcoin-to-become-a-major-safe-haven\/\">experience a strong recovery<\/a> as a result of large stimulus packages coming out of the U.S. and Europe.<\/p>\n<figure id=\"attachment_128748\" aria-describedby=\"caption-attachment-128748\" style=\"width: 2632px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-128748\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/1-6.png\" alt=\"bitcoin price\" width=\"2632\" height=\"1332\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/1-6.png 2632w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/1-6-300x152.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/1-6-1024x518.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/1-6-768x389.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/1-6-1536x777.png 1536w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/1-6-2048x1036.png 2048w\" sizes=\"(max-width: 2632px) 100vw, 2632px\" \/><figcaption id=\"caption-attachment-128748\" class=\"wp-caption-text\">A bearish Bitcoin price scenario (source: Pentarhudi)<\/figcaption><\/figure>\n<h2>So what's next?<\/h2>\n<p>In a bearish scenario, Pentarhudi said that he expects the Bitcoin price to see a new bottom below $3,000 if it rejects $8,500.<\/p>\n<p>The technical analysis of the trader matches the fundamental analysis of high-profile investors like <a href=\"https:\/\/cryptoslate.com\/people\/chris-burniske\/\">Chris Burniske<\/a>, who have suggested that Bitcoin is facing a rougher year in 2020 than in 2015.<\/p>\n<p>Burniske <a href=\"https:\/\/twitter.com\/cburniske\/status\/1239585594558169089\">explained<\/a>:<\/p>\n<blockquote><p>&#8220;For many reasons, 2020 is rougher than 2015. And let\u2019s face it, the world has bigger problems than #bitcoin\u2019s bottom at the moment. But the next really strong support I see is our last bottom (low $3000s). Futures were offered around there in size last Thursday, and if there\u2019s more bad news for the world ahead (there is), BTC is unlikely to be spared.&#8221;<\/p><\/blockquote>\n<p>Since the Bitcoin price dropped to $3,600, a large portion of the cryptocurrency market's volume moved from futures exchanges to the spot market. After this shift, resilience in the price of Bitcoin increased.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A prominent trader known as PentarhUdi accurately called the drop from $10,000 to sub-$6,000 and has called many full Bitcoin market cycles in the past several years, believes BTC is headed to up to $8,500. When the Bitcoin price initially hit $5,200, the trader said that the dominant cryptocurrency is likely to move towards the [&hellip;]<\/p>\n","protected":false},"author":187,"featured_media":128753,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[120,15323],"tags":[],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>A prominent trader makes the case for $8.5k Bitcoin before making new lows<\/title>\n<meta name=\"description\" content=\"Pentarhudi, a prominent trader who has accurately called the drop from $10,000 to sub-$6,000 believes bitcoin is headed to up to $8,500.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/legendary-bitcoin-trader-makes-case-for-8-5k\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"A prominent trader makes the case for $8.5k Bitcoin before making new lows\" \/>\n<meta property=\"og:description\" content=\"Pentarhudi, a prominent trader who has accurately called the drop from $10,000 to sub-$6,000 believes bitcoin is headed to up to $8,500.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/legendary-bitcoin-trader-makes-case-for-8-5k\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2020-03-24T13:00:12+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-03-24T10:47:54+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/bitcoin-climb-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Joseph Young\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Joseph Young\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/legendary-bitcoin-trader-makes-case-for-8-5k\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/legendary-bitcoin-trader-makes-case-for-8-5k\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/joseph-young\/#person\",\"name\":\"Joseph Young\",\"url\":\"https:\/\/cryptoslate.com\/author\/joseph-young\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/joseph-young\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/joseph-young\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2018\/08\/author-joseph-young.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2018\/08\/author-joseph-young.jpg\",\"caption\":\"Joseph Young\"},\"jobTitle\":\"Analyst\",\"description\":\"Joseph Young is a finance and tech journalist. 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