Over the past two to three days, the Bitcoin (BTC) price has finally stagnated, with this market finally faltering after a near-nonstop uptrend that brought the cryptocurrency higher by 43% higher.
Since hitting $9,200 late last week, Bitcoin has retraced to $8,600, where the price of the leading cryptocurrency is seemingly trying to establish a tight range.
While some are saying this latest drop is a precursor to a plunge to the $7,000s, a cryptocurrency analyst has pointed out that the recent consolidation seen may actually be a precursor to yet another surge higher.
Bitcoin Price May Soon Surge Higher, Analysis Shows
Cryptocurrency charting Twitter account TrendSpider recently noted that Bitcoin’s weekly chart, coupled with a volume profile anchored to the ascending wedge that sent BTC from $4,000 to $14,000 in a few months’ time, is printing a bullish sign: the price of BTC has settled on top of a high volume node per the volume profile, indicating that support has been found in the mid-$8,000s on a macro basis.
With there being little liquidity supply until $10,000, any move higher from here or any influx of buying pressure could kick off another rally in the Bitcoin market that will push BTC towards the key resistance near the boundary between four digits and five.
$BTC#BTC Not a lot of supply above until $10k. Volume creating a base here with the volume profile anchored from the original ascending wedge breakout. Did some case studies for @scottmelker this week in his newsletter, make sure to check it out!! pic.twitter.com/Owq4IcetL7
It isn’t only the volume profile that suggests bulls remain in control of the cryptocurrency market.
Per previous reports from Ethereum World News, a trader going by Galaxy yesterday remarked via Twitter that BTC holding $8,400 will set prices up for a 20% surge to five digits, to $10,000. Galaxy, in his chart accompanying the above assertion, accentuated that $8,400 is both a key horizontal support and where there exists a trendline that has constrained Bitcoin’s upward price action for the past seven or so months.
The technicals, too, are bullish.
Pseudonymous trader Dave the Wave, who called BTC’s decline from prices above $10,000 to $6,400, said that he expects for BTC to hit $11,500 by the middle of February.
Backing this prediction, Dave looked to a confluence of factors:
Bitcoin recently broke above a descending channel that has constrained price action for more than six months, marking a large win for bulls.
The weekly Moving Average Convergence Divergence (MACD) is starting to trend higher once again, which was a signal seen in 2015/2016 as BTC moved from a bear market to bull.