Bitcoin: Trend Reversal or Another Push Before We Fall Flat?
- Bitcoin climbs to $8,000, market sentiments simmers down from “extreme fear”
- Trader says Bitcoin still in a downtrend but analyst says a break above $8,100 bullish
- BTC’s next move is crucial as it “will largely determine its course for the foreseeable future”
Ever since Bitcoin hit $6,850 on Jan. 3rd, the digital asset has been slowly making its way upwards.
First, on the same day, we went to $7,350 level than on Jan. 5 we made it to $7,450. On Jan. 6, we added another $100 only to surpass $8,000 level on Jan. 7.
Currently trading at $7,874, in the past 24 hours, the trading volume took a jump as well going from less than $200 million on the weekend to more than $1 billion.
With 4.18% gains, Bitcoin is today’s biggest gainer among the top 20 cryptocurrencies. These gains also have investors coming out of the “extreme fear,” a sentiment the market has been experiencing since November.
A Break above $8,100 will be Bullish
The flagship cryptocurrency might have everyone excited with investors expecting some big moves ahead. But according to analyst The Cryptomist, we won’t be reaching $8,800 level next, at least not this time around.
On Dec. 30, how a possible daily ascending triangle within a weekly falling wedge plays out, we would be breaking out to $7,900 and $8,800 would be possible as well, said The Cryptomist.
But only if BTC manages to break $8,100 then she will turn bullish.
Good morning loveys
Bulls need daily close above 7960
Bears need a close below 7750
Gap is at 7676 region
Pick your poison carefully! ☺️
— The Cryptomist (@TheCryptomist) January 7, 2020
A similar bearish sentiment is shared by TraderXO whos says Bitcoin is still in a downtrend which means the price can hit $8,200-$8,500 only to fall flat. However, analyst CL is calling for a trend reversal based on the 4hr 200MA.
Trend reversal sighted in the wild. https://t.co/KZHFjtSbcc
— Willy Woo (@woonomic) January 7, 2020
The ongoing Bitcoin market movement, sideways ranges in a downtrend, trader Cold Blooded Shiller says represents re-distribution instead of accumulation.
The accumulation borns from a steady uptrend and that he says happens when we made the first strong move with $4k range before “establishing the grind.”
Trader Nik Patel meanwhile says if BTC manages to close above the trendline resistance from June 2019 at $7,413, it is a good sign for the leading cryptocurrency because Bitcoin failed to do so on numerous occasions.
The wing low at $6,490, in mid-December, was swept and closed with an engulfing candle. Then we had a consolidation below $7,700 resistance only to now have a breakout.
So, if or the first time in six months, we manage to close above the trendline resistance, we could climb to $10,630 in the coming months, but of course, that will be riddled with a couple of corrections.
Whatever is BTC’s next move, trader Scott Melker says, it “will largely determine its course for the foreseeable future.”