Why Analysts Expect More Upside After Bitcoin Just Broke $10,000 (Again)
Over the past 36 hours, Bitcoin has finally started to show signs of strength after the brutal 10% sell-off earlier this week. From the week’s most traded price at $9,600, the cryptocurrency has pressed higher to $10,000 as of the time of writing this, seemingly to establish a short-term candle close above this crucial psychological level.
While still in its earliest stages, analysts say this latest leg to the upside has room to run, citing a confluence of positive technical factors that suggest Bitcoin is entering back into a bull trend.
Bitcoin Prints Confluence of Strong Technical Signs, Meaning More Upside May Be Imminent
Ledger Status, a prominent market commentator, noted that with Bitcoin’s latest surge higher, it has reclaimed a key moving average. The moving average wasn’t specified, though the analyst strongly suggested that this technical achievement has the ability to send BTC even higher in the coming days. Indeed, some moving averages, in many scenarios, are seen as an indicator of an asset’s directionality.
Daily reclaim. Send it. pic.twitter.com/trodKcZFTF
— Ledger Status (@ledgerstatus) February 24, 2020
If you don’t believe in moving averages, there are other signs that BTC could continue to roar back to its previous highs at $10,500 in the coming days.
Trader Smokey, a popular market commentator, noted that the four-hour Ichimoku Cloud for Bitcoin is “starting to turn bullish again,” adding that there are other “good signs” on the same chart.
He added that the 12-hour Kumo band of the Ichimoku Cloud is “holding beautiful,” while the Moving Average Convergence Divergence (MACD) is on the verge of crossing bullish.
Not to mention, a number of positive technical signs have been seen on Bitcoin’s one-day chart: the Relative Strength Index just decisively bounced off 50, the Chaikin Money Flow remains above the 0 baseline, and the on-balance volume is peaking out of a multi-month downtrend resistance.
Strong Weekly Close
These technical factors have been underscored by Bitcoin’s weekly close, which took place earlier this hour. Despite the 10% flash dump seen on Wednesday, the week actually ended positive for BTC, with the asset closing around $9,970 after opening the week at $9,910.
This is bullish. As pointed out in Mexbt’s chart, published in the wake of the weekly close, the ongoing recovery allowed Bitcoin to maintain the crucial $9,500 support on a weekly basis.
Wow what a weekly close for Bitcoin! pic.twitter.com/7YYzQ6qbiR
— mexbt (@mexbt24) February 24, 2020
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