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After reaching as low as $9,500 on Monday, Bitcoin started to trend higher. As of the time of this article's writing on Tuesday, the cryptocurrency has reached as high as $10,300 — 8% higher than the local bottom but a few percent below the local top at $10,500.
The strong recovery from the key $9,500 level is bullish, for it confirms the uptrend structure of Bitcoin remains intact. Indeed, a number of analysts have said that the price of BTC's recovery is a likely precursor to yet another thrust higher, a thrust that will bring this market to new multi-month highs.
The recent move higher has convinced many that Bitcoin is ready to move even higher.
Gerald Walker, who has a moniker “The Wolf of All Streets,” remarked that Bitcoin remains in an ascending channel and is forming a wave pattern that will take it past $11,000 in the coming days.
The channel and wave he was referring to can be seen in the tweet below, which shows that Bitcoin bouncing off a crucial horizontal and diagonal support around a Fibonacci Retracement is priming the asset for a thrust to $11,000.
Walker added that as long as the $9,060 level stays intact, he expects to see “higher prices.”
Indeed, Bitazu Capital's Mohit Sorout remarked that despite the retracement seen over the weekend, Bitcoin's “market structure” remains intact, referencing the existence of a bull trend and the bounce off a key horizontal level.
Not to mention, the long-term uptrend remains decisively intact.
On Monday, analysts observed an extremely positive technical analysis signal: the 50-day simple moving average and the 200-day simple moving average crossed, with the former moving over the latter for the first time in nearly a year. This is called a “golden cross.”
Analysts have said that this validates the uptrend in the price of BTC, for it shows that a strong uptrend is forming.
Not to mention, Bitcoin's holding above its 200-day moving average has always boded well for the cryptocurrency. An analysis from market research firm Fundstrat Global Advisors found that the average six-month gain for Bitcoin after it retakes its 200-day moving average is 197%, implying a price of over $20,000 by the middle of this year.
Original article posted on the EthereumWorldNews.com site, by Nick Chong.
