In its fourth leg up during the last two weeks, Bitcoin price rose all the way up to $6830 USD. It was a fruitful Saturday for the coin as it gained about $200 USD on the price it closed with on Friday. It has since established a sideways pattern during Sunday and is currently being traded at $6,839.78 USD, which is a 3.37% increase in the last 24 hours. Market cap also recovered further as the coin currently sits on $117,220,915,695 USD worth of it.
So, it seems like Bitcoin is really adamant on testing that $7000 USD resistance. A major ascending channel with a weak support at $6,600 can easily be noticed on the chart of the BTC/USD pair. If BTC decides to remain inside this channel, a retest of $6850 and $7000 USD is on the short-term horizon. A decline below $6600 could signal further drops towards $6450 and $6250 USD support levels.
The latest surge can be attributed to a couple of bullish events which graced the cryptosphere during the week. Among others, South Korea loosened its restrictions on cryptocurrencies and Facebook reinstated crypto ads while further reshuffling its organizational structure to adapt to its newly-developed interest in crypto. An increased activity of crypto whales has been noticed on exchanges as they are beginning to place strong buy orders worth hundreds and even thousands of Bitcoins. All of these could have been the reasons why Bitcoin’s latest jump happened.
Currently there is no general consensus on where Bitcoin will be going in the future. Some people feel that this is just a temporary bull trap that will soon fall through the floor due to a general lack of buying volume on each of the pumps that happened. Others have somewhat more bullish outlooks. Twitter user @RatesCrypto “took the famous psychology of a market cycle” graph and compared it to the current situation. The end result looked as follows:
@JoshMcGruff had a similar outlook as he posted the following tweet:
“10/20 EMA cross on the 1D incoming on $BTC. Last time we did this was in April before running up to 10K. If that cross finishes, I’m bullish at least for the short term until that crosses back down.”
@CryptoDonAlt confirms the previously expressed sentiments with his own post:
“$BTC daily update: Finally moving. Like I expected a move to 6800 pre weekly close. Once the weekly close is out of the way we’ll get the real move. If it closes like this tomorrow I’ll be heavily short again. So far so good.”
It seems that we are currently at the stage where people are slowly considering that there might be an actual BTC bull run forming. Lest we forget, many outspoken analysts still fully expect that we drop below $5000 USD before the real break upwards begins. However, reasons for optimism do exist and we’ll see what the upcoming week has in store for the market.
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