Bitcoin and the aggregated crypto markets have incurred a significant influx of buying pressure today that has allowed BTC and most major altcoins to rocket higher, which may signal that the market’s recent lows will mark long-term bottom that is followed by the next noteworthy uptrend.
Analysts are noting, however, that Bitcoin may pullback slightly before it is able to decisively break above $9,000.
Bitcoin Surges Over 5% as Bulls Take Control
At the time of writing, Bitcoin is trading up roughly 5% at its current price of $8,610, which marks a notable surge from its daily lows that currently sit below $8,200 – a region that has consistently been a strong support level for the cryptocurrency.
Bitcoin’s jump today has allowed the aggregated crypto markets to follow suit and surge concurrently with it, as Ethereum has surged over 6% while XRP has climbed just over 2%.
Today’s surge has also allowed Bitcoin Cash to reclaim its position as the fourth largest cryptocurrency by market capitalization, which had previously been lost to Tether during the recent period of consolidation experienced by the markets.
It is important to note that today’s price action has allowed Bitcoin to decisively break above its previous resistance level at $8,400, which may signal that significantly further gains are imminent.
Luke Martin, a popular crypto analyst on Twitter, explained in a recent tweet that he believes BTC will retrace lower in the short-term until it revisits $8,400 and confirms this level as support, before subsequently surging higher.
“$BTC pop to the 8700 area. Only problem is (for me) it happened so quick there was no high timeframe close. Any dip to the 8400 zone would be an attractive entry before more upside imo,” Martin said while pointing to the chart seen below.
$BTC pop to the 8700 area.
Only problem is (for me) it happened so quick there was no high timeframe close.
Any dip to the 8400 zone would be an attractive entry before more upside imo pic.twitter.com/RzerjVtHjb
— Luke Martin (@VentureCoinist) October 9, 2019
If it does revisit $8,400 and confirms this level as support, it will mark a resistance-turned-support that is typically a bullish formation the precedes continuation of upwards momentum.
The next few hours will be imperative for determining the long-term significance of this movement, as an inability for bulls to push it any higher in the near-term could lead it back into its previous trading range and point to an underlying weakness amongst the crypto’s bulls.