Bitcoin Black Friday Sale? Nah! BTC Price Jumps, Trading Shy of $8,000
- Shorts fueling rally has Bitcoin surging 21% in five days after losing 38% in just over one month
- BTC price meanwhile approaching weekly resistance in the $8,060-$9,500 range
- For the rally momentum to sustain, we need to produce some higher highs
- And it has happened!
As we reported, “Get Ready for a Thanksgiving Day after Spike in Bitcoin Price,” the leading cryptocurrency has delivered.
From almost $7,400, BTC/USD has jumped to today’s highest level, so far, at $7,870, jumping more than 6%. Currently, it is trading at $7,745 as per Coincodex while managing the daily trading volume of $432 million.
In the past five days, Bitcoin has surged 21% in value after losing 38% in just over one month.
Today, the world might be celebrating Black Friday sale but for the crypto market, it came early. For the past two weeks, Bitcoin has been trading heavily discounted but we are back to climbing upwards.
People went from full bull to full bear to full bull again.
All in November
— Squeeze (@cryptoSqueeze) November 29, 2019
However, it’s yet to be seen if this surge will be short lived or we will finally break above $10,000 before 2019 ends because the market is still in fear.
According to Crypto Fear and Greed Index, earlier this week the market was quivering with “extreme fear” with a reading of 17 on the 0-100 scale. Though the current “fear” is an improvement, we aren’t out of danger yet.
Analyst and trader Crypto Wolf also pointed out two scenarios that Bitcoin can play out as it approaches weekly resistance in the $8,060-$9,500 range.
The bearish retest of the weekly resistance would send Bitcoin to retest the at $6,750 or lower further.
The other scenario isn’t any bright either because if Bitcoin breaks and closes above $8,060, it could still get stuck in the range.
The “most important thing” however is the range which he says starts the altcoin party.
Trader Bob Loukas says shorts are the ones that are fueling this rally and “The positive is 98% of traders appear to be short or want to get short. That's logical given the trend.”
Shorts paying back profits, fueling the rally, as is always the case after a prolonged downtrend.
— Bob Loukas (@BobLoukas) November 29, 2019
Cryptocurrency exchange OKEx in its latest report also stated that despite the preliminary recovery signals, the rebound could be soon tested. The coming days, it says could be the key to determine if it is really a reversal or a short lived rally.
The reversal is too early, for now, to be called a trend reversal and for the rally momentum to sustain, we need to produce some higher highs.
4 weeks of selling followed by 1 week of bounce isn't necessarily as bullish as the small timeframes make it out to be.
For reference, this green candle "only" reclaimed 50% of the previous one.
I'm personally not looking to rush into a long position just yet. pic.twitter.com/cocbewmTUz
— DonAlt (@CryptoDonAlt) November 28, 2019
For longer term, data from Sentix suggests that some investors still believe bitcoin remains overvalued.