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.
Bitcoin’s Outlook Turns Positive Again Amid Recovery
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.
#bitcoin update i cancelled most of my shorts i think we will see higher prices as long as 9060 and the uptrend channel remains intact pic.twitter.com/aGNQ8WLk7h
— TheWolfOfAllStreets (@GerardWalker5) February 18, 2020
Walker added that as long as the $9,060 level stays intact, he expects to see “higher prices.”
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.
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