Bitcoin has been facing significant selling pressure over the past several weeks, which came about after the crypto broke below the lower boundary of the long-established descending triangle that it had been caught within for the past several months.
Despite this, BTC is currently expressing some signs of bullishness after finding significant buying pressure within the upper-$7,000 region, which may point to the possibility that a shift in its current downtrend is imminent.
Bitcoin Runs Towards $8,300 After Dropping to $7,800 Overnight
At the time of writing, Bitcoin is trading up nearly 3% at its current price of $8,245, which marks a notable recovery from its sharp overnight drop to $7,800 that sent the aggregated crypto markets reeling lower as many traders piled into short positions.
This drop, however, was met with significant buying pressure that quickly pushed the cryptocurrency back into the $8,000 region and may have even marked the start of the next uptrend within the aggregated crypto markets, as it has caused most major altcoins to post noteworthy gains today.
Currently, Bitcoin is in the process of breaching above its upper Bollinger Band on its four-hour chart, which may signal that further bullishness is imminent, assuming that BTC is able to follow through with its newfound momentum.
“$BTC #Bitcoin 4 hour – Breaching upper BB for the first time since 10.4k,” Big Cheds, a popular crypto analyst on Twitter, explained in a recent tweet.
$BTC #Bitcoin 4 hour – Breaching upper BB for the first time since 10.4k pic.twitter.com/Ii8iikgLFW
— Cheds (@BigCheds) September 30, 2019
Additionally, BTC’s rapid recovery from its overnight drop may also be emblematic of a trend shift.
Mitoshi Kaku, another popular crypto analyst on Twitter, explained in a recent tweet that he is closely watching the next Gann pivot that is set to occur on October 8th, which typically offers significant insight into which direction Bitcoin will trend next.
“Realized I forgot to update this chart. The levels are good so far. I’m currently on a long from 7790, but I don’t want that to be a long-term trade, I’m patiently waiting for the signals, to open a big position when the time is right. Next pivot 10/8,” he noted while referencing the below chart.
Realized I forgot to update this chart. The levels are good so far. I’m currently on a long from 7790, but I don’t want that to be a long term trade, I’m patiently waiting for the signals, to open a big position when the time is right. Next pivot 10/8 #Patience #CryptoIkagi $BTC pic.twitter.com/21HrJCdIIC
— Joe • Mitoshi 🧑🚀 (@CryptoSays) September 30, 2019
How Bitcoin responds to its current test of its upper Bollinger Band could set the tone for which direction it trends next, as bullish price action coming into its upcoming Gann pivot is imperative if BTC is to trend upwards throughout the second half of 2019.