Don't Get Euphoric, 10% Bitcoin Bounce to $7,400 Not Bullish: Analyst 14
Bitcoin (BTC) News

Don’t Get Euphoric, 10% Bitcoin Bounce to $7,400 Not Bullish: Analyst

By Nick Chongon

Over the past day, Bitcoin bulls have finally been afforded some reprieve, with BTC pushing from a weekly low of $6,600 to $7,400 in a massive 10%+ upswing. As this reprieve comes after nearly a week of non-stop selling pressure, which pushed the asset from $8,100 to $6,600 in a dramatic fashion, bulls have welcomed this move. Obviously…  

In fact, some have said that this clean bounce off the key $6,600 support zone is a clear sign that the macro bottom is put in, meaning that Bitcoin is ready to welcome $10,000 and eventually new all-time highs yet again.

Though, one analyst remarked that it’s too soon to get bullish on Bitcoin, citing a confluence of bearish factors that may actually imply that there is more pain coming for the crypto market. Ouch. 

Bitcoin Bulls Celebrating too Early?

Analyst Crypto Walker recently drew attention to a few signs that it may be too early to call a reversal for the cryptocurrency markets. These signs include but aren’t limited to a high-volume rejection at the $7,400 resistance and market pivot point, a bear flag forming on low time frames, and the fact that the pump to $7,400 was “mostly fueled by shorts” covering their positions (as made evident by BitMEX open interest falling). 

While Walker is sure that bulls are popping corks too early, there are a number of signs hinting that a long-term bull trend is forming, or at least that the old one remains intact.

Bull Trend Still Intact?

Marcel Burger, the head of a crypto investment boutique based in the Netherlands, recently noted that Bitcoin’s one-week chart is still showing signs of strength. 

He noted that BTC’s one-week candles are currently painting a massive bull flag, marked by parallel lower highs and lower lows. If this textbook pattern plays out in full, the cryptocurrency will continue higher into the start of 2020, potentially back into the five-figures range, after a strong breakout to the upside.

That’s not all. Burger continued that Bitcoin remains just below the key 0.618 Fibonacci Retracement level, which some analysts call the “golden pocket” of support. If the cryptocurrency manages to flip that level into a support level, it would suggest that upside could be had in the weeks and months that followed.

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