Bitcoin Bulls Return as BTC Taps $8,000
Bulls are looking to take control of Bitcoin (BTC) after a week of boring price action. In the past 48 hours, BTC has tried to convincingly break past $8,000 and close a key four-hour or 12-hour candle above $8,200. While this auspicious event from a technical analysis standpoint hasn’t come to fruition just yet, some cheery analysts are coming to the conclusion that bulls will only continue to pressure BTC higher in the days to come.
Financial Survivalism claimed that having found clear support at $7,600, Bitcoin may be poised to head higher. He claims that the asset’s four-hour chart is looking like an Accumulation pattern laid out by technical analysis guru and legend Richard Wyckoff.
If the textbook pattern plays out in full, Survivalism explains that he expects for BTC to break past $8,040, fall back to $7,700, and then return back to the mid to high-$8,000s.
This isn’t the only bullish sign that the analyst observed. In a subsequent tweet, Survivalism explained that if the nine four-hour exponential moving average crosses above the 50, Bitcoin will be “fully bullish” on the four-hour chart, implying “another leg up in the market.”This has yet to happen, but if BTC keeps the upward pressure, it will likely happen within the coming day.
Survivalism isn’t the only one that is short-term bullish. In a recent tweet outlining an astute observation, analyst Filb Filb noted that movements in Tether’s market capitalization have accurately predicted moves in BTC. With the number of Tether rapidly rising, recently surmounting a jaw-dropping $3 billion, Filb seems to be predicting that Bitcoin will soon shoot higher. While Tether was found not to directly be manipulating markets, more USDT in circulation is supposed to mean more money flowing into the space.
This isn’t the only reason why Filb is bullish. Per previous reports from Ethereum World News, he ventured that the inverse of Bitcoin’s current price action is looking much like it did during December’s bottom, especially from the viewpoint of BTC’s four-hour chart.
During December, Bitcoin saw a steady increase in its Relative Strength Index (RSI) and On-Balance Volume (OBV) indicators over a number of weeks, all while BTC traded within two channels.
As seen below, the leading cryptocurrency is following that exact pattern now, having seen a sustained increase in RSI and OBV and having traded within channels seen in December. If history is of any guide, Filb suspects that Bitcoin may range between $7,600 and $8,000 for another week or two, break past $8,000, and then slowly trend back to near $9,000.
There have been some a bit skeptical of price action, however. Per previous reports, during Bitcoin’s last long-term uptrend, BTC touched its 100-day EMA seven times. This continual support along a single technical trend is what defined 2017’s trend. The thing is, this time around, Bitcoin has yet to even flirt with the 100-day exponential moving average. This implies, in some analysts’ eyes, that a pullback is inbound.
Title Image Courtesy of Andre Francois Mckenzie Via Unsplash