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It appears that Bitcoin bears might finally be dead. For the fourth or the fifth day in a row, the leading cryptocurrency has rocketed higher, recently surging as high as $8,120 — the highest price the cryptocurrency has seen in just around 50 days due to a tight bottoming pattern that formed over the course of the holiday season.
Right now, BTC has stalled around $8,000, finding some resistance at these levels due to historically-relevant horizontal resistance regions.
Despite this, investors are becoming convinced that Bitcoin’s momentum for (at least the next couple of days) is in the upward direction.
Adaptive Capital’s new analyst, CL, recently noted that Bitcoin’s four-hour chart is showing clear signs of a reversal on a medium-term basis.
The trader and chartist specifically looked to the Bollinger Bands indicator, which he claims shows a bullish trend is currently emerging:
“When price starts deviating away from the 4hr 200MA, out of the bands, especially after consolidation, and a BB squeeze, a new trend usually emerges. There is not much more to say, I will be buying dips. Send it.”
Indeed, as he notes in the collection of charts below, every time Bitcoin and Bollinger Bands acted as they just did, a breakout emerged.
That’s far from the end of it. Trader Byzantine General noted that while BTC is currently encountering some resistance around the $8,000 region, the four-hour chart just printed a 50 exponential moving average and 200 exponential moving average bull cross, suggesting bulls are decisively in control.
While the bulls seem to be in control, there are a few hurdles for Bitcoin and its ilk to mount before all is well on a medium-term basis.
Trader Big Chonis noted that Bitcoin is currently encountering a declining resistance line that has constricted the cryptocurrency’s price action for the past six or seven months. The cryptocurrency will need to see a key daily candle close above that level for it to be invalidated, for it has resisted BTC multiple times over the past few months.
Original article posted on the EthereumWorldNews.com site, by Nick Chong.
