Bitcoin has been caught in a prolonged bout of sideways trading in the time since its massive surge from $6,400 to $7,600, and BTC’s failure to extend this momentum had led some analysts to believe that the crypto would see a continuance of the downwards momentum that it has faced over the past several months.
Today, however, the crypto was able to incur a sizable rally that has sparked some strong upwards momentum, which may signal that a true bull-favoring trend shift is imminent.
Bitcoin Surges to $7,450 as Analysts Eye Imminent Trend Reversal
At the time of writing, Bitcoin is trading up 3% at its current price of $7,400, which marks a notable climb from its daily lows of $7,140.
Prior to today’s upwards movement, Bitcoin had been trading sideways around $7,200 for multiple days, forming a relatively tight trading range that led many analysts to claim that the resolution of this range could offer significant insight into where the markets are heading next.
The momentum of this movement has brought BTC up into a key resistance level that appears to be holding strong, but analysts are noting that the strength of this move may mean that it will soon surge past this resistance.
“Price action steep and strong in to asks. I will tighten stop straight away to ~0.2R. I don’t want to get caught shorting decent momentum with too much risk after getting response from my level,” Bitcoin Jack – a popular cryptocurrency analyst – explained in a recent tweet.
Price action steep and strong in to asks
I will tighten stop straight away to ~0.2R
I don't want to get caught shorting decent momentum with too much risk after getting response from my level pic.twitter.com/gA1csBxZI8
Because the trading range is resolving in an upwards movement that appears to have some decent strength, it is possible that Bitcoin’s recent lows of $6,400 will mark a long-term bottom for the cryptocurrency.
Big Cheds, another popular cryptocurrency analyst, explained in a recent tweet that BTC is currently showing some signs of potentially posting a long-term reversal – a notion that could be confirmed if the crypto is able to hold around its current levels as it fast approaches its weekly close.
“$BTC #Bitcoin 1 hour/ 12 hour – some volume coming in which could be an early sign of trend break,” he explained while pointing to the chart seen below.