Bitcoin had been facing significant downwards pressure earlier this week that sent it as low as $7,000 before bulls stepped up and propelled it to highs of $7,800. This volatility comes as the crypto’s bulls and bears remain deadlocked as the end of the year fast approaches.
In spite of the firm downtrend that Bitcoin has been caught in since late-October, one analyst is noting that now could be one of the greatest buying opportunities of all time, as BTC is currently forming a technical formation only seen before major bull runs.
Bitcoin Runs Towards $7,800 Before Meeting Resistance
At the time of writing, Bitcoin is trading down under 1% at its current price of $7,300, which marks a notable surge from its daily lows of $7,000 that were set during the recent sell-off.
Bitcoin’s ability to post a strong bounce from these lows signals that bulls are not ready to expose the cryptocurrency to significantly further downside, and the rally sparked by this sell-off may signal that bulls currently have underlying strength.
In spite of this, it is important to note that the rally stalled when Bitcoin tapped $7,800, signaling that this is a near-term resistance level for the cryptocurrency, and it has almost fully retraced in the time since the rally first occurred.
One factor that may have some sway on Bitcoin’s near-term price action is the fact that a significant amount of Bitcoin was transferred between unknown wallets – possibly to or from an exchange.
Hsaka, a popular cryptocurrency analyst on Twitter, spoke about this in a recent tweet, noting that it may have influence on the next major BTC price movement.
“Don’t let this 200,000 $BTC transaction go in vain. It’s definitely favorable to your current position,” he said while referencing multiple alerts showing that the transfers had been initiated.
In spite of Bitcoin’s quick retrace from its recent pump, it is important to note that it is currently expressing a bullish technical formation that has historically been followed by massive price rallies.
Riggs, a cryptocurrency analyst on Twitter and self-described quant analyst, spoke about this in a tweet while referencing the chart seen below:
“I find it hilarious that all these ‘top’ Bitcoin twitter people have capitulated & turned bearish at what is now one of the top 3 greatest buying opportunities in investment history. Their little signal blinks quick & they just throw in the towel? All noise. What a time.”
The coming weeks and months will likely validate or invalidate this bullish possibility, as BTC will have to climb higher in order for Riggs to be proven correct.