Bitcoin Taps Multi-Month Resistance; Break Above Could Lead to Parabolic Gains
Bitcoin’s 2020 rally has begun showing signs of turning parabolic as the crypto races towards $9,000, with its uptrend being firm and unwavering. The sustainability of this trend seems to suggest that that bulls are incredibly strong at the moment, which may mean that BTC will see further gains before its rally stalls.
It is important to note that BTC is fast approaching a critical multi-month resistance level that it has been rejected at on multiple occasions, and a failure to post a decisive break of this level could mean that the crypto will soon set fresh 2020 lows.
Bitcoin Races Towards $9,000, But Strong Resistance May Spark Massive Sell Off
At the time of writing, Bitcoin is trading up over 7% at its current price of $8,700, which marks a massive climb from its daily lows of $8,100 and only a slight decline from its intra-rally highs of $8,800.
This uptrend has simply marked an extension of the massive momentum that was first established earlier this month when Bitcoin tapped lows of $6,800.
The massive amount of buy orders that existed in this region were enough to help catalyze a massive amount of upwards momentum, and it is growing increasingly apparent that BTC’s recent lows within the $6,000 region could mark a long-term bottom for the cryptocurrency.
HornHairs, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that Bitcoin’s ability to hold above the key resistance that previously sat around its current price levels signals that further gains are imminent, setting a target around $9,000.
“$BTC HTF outlook for my long entry and current target: 4H closed above a crucial level for me, flipping it support, prompting me to look for longs in the level in the event of a dip. Target at $9k comes from previous support flipped resistance + 0.618 fib confluence. Let’s see,” he explained while pointing to the chart seen below.
$BTC HTF outlook for my long entry and current target
4H closed above a crucial level for me, flipping it support, prompting me to look for longs in the level in the event of a dip.
It is important to note that BTC is just a hair below a key multi-month resistance that has been hampering the cryptocurrency’s recent price action, and a strong rejection at this level could lead the crypto to set fresh 2020 lows.
“$BTC – tripple upper channel touch #bitcoin daily chart,” Big Chonis, a popular crypto analyst on Twitter, explained in a recent tweet.
How BTC responds to this key level in the coming hours will likely offer tremendous insight into the long-term significance of its recent uptrend.
Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of EWN or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.