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After trading below $ 9,000 from the peak on Wednesday, Bitcoin has been subject to a strong recovery in recent days, culminating in a breakout seen in the last hour.
The cryptocurrency, as of this writing, is trading at $ 9,150, over 9% more than the post-rally lows of $ 8,400 and about 4% in the past 24 hours. However, BTC is still a few hundred dollars below the $ 9,500 cap.
TradingView.com Chart
Bitcoin’s breakout comes despite a series of bearish signals that the cryptocurrency has printed in recent days: 1) a selling wall consisting of 1,000 Bitcoin, worth more than $ 8 million, which appeared on Saturday morning at Binance, and 2) BTC Global GTI The strength indicator passes 70, suggesting the uptrend is depleted.
Bitcoin has room to gather
The passage of more than $ 9,000 is far from the end of the uptrend, according to the best analysts.
A well-known merchant remarked that there is a strong confluence of reasons to be bullish on Bitcoin right now, even with the bearish signals mentioned in the charts:
- The financing rate on BitMEX, which is the amount that long payments are short, and the premium index, the difference that people pay for Bitcoin on BitMEX versus the price of the BTC index, “is still negative.” This suggests that longs are not yet over-leveraged.
- Bitcoin is trading above the volume weighted average annual price.
- BTC is above the 200-day moving average.
- The one-day Ichimoku cloud has turned bullish.
- The halving of the Bitcoin block reward now only takes 10 days.
In affirming how strong the current bullish trend is, the trader added that while “you cannot call and shorten THE top, you will save yourself a lot of potential headaches by waiting for a break in the 1D market structure.”
Optimism was echoed by other traders, like the one who shared The chart below indicates that Bitcoin’s recent price action is eerily similar to that seen in August 2015, when the cryptocurrency underwent a parabolic breakdown from macro lows.
If Bitcoin continues to follow this fractal up to a T, it could hit $ 14,000 in about a week, which would be in line with Bitcoin’s halving and a subsequent selloff spurred by miners flipping coins.
Long-term trend that also gives positive shape
The long-term trend of the leading cryptocurrency is also beginning to form to be positive.
In a cryptocurrency research note released Thursday, David Grider, the leading digital strategist at Wall Street analytics firm Fundstrat Global Advisors, said his firm is optimistic about Bitcoin’s advance, specifically citing the halving as a positive catalyst:
“We are optimistic for the next 12 months and we expect prices to continue to rise [halving] and possibly later. “
Marketwatch, who covered the note, suggested that Fundstrat sees the cryptocurrency nearly doubling in the next 12 months to $ 14,350.
Photo by Olav Tvedt on Unsplash
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