Bitcoin Bitcoin Flipping One Crucial Level into Support Could Spark a Wild Bull Trend
Cole Petersen | Jun 23, 2020 | 18:00
- Bitcoin has been able to maintain the gains it posted yesterday after it saw a sharp rally that led it up to highs of $9,800 from its recent lows of $9,200
- This movement was unexpected, and certainly boosted the crypto’s bull case
- That being said, BTC still remains firmly within its long-held trading range
- Whether or not it is able to sustain this momentum may be dependent on if it is able to flip a crucial level into support
- A confirmation of this previous resistance level becoming support could be enough to spark a wild bull trend, according to analysts
Bitcoin and the aggregated cryptocurrency market were able to add several percent to their market caps during a sharp movement seen yesterday.
This surge came about suddenly and marked a resolution to the tight bout of rangebound trading the crypto experienced over the past week around $9,400.
Despite breaking its short-term consolidation trend, BTC still remains stuck within its macro trading range between $9,000 and $10,000. Neither of these levels have been firmly broken by bulls or bears over the past several weeks.
Buyers, however, could be on the cusp of catalyzing a massive upside movement if they are able to flip one key level into support.
Bitcoin Pushes Higher as the Bulls Case Grows Stronger
At the time of writing, Bitcoin is trading up just under 2% at its current price of $9,615. This is around the level at which it traded at overnight and in the time following its rally from its recent lows.
The recent rally sent BTC to highs of $9,800, but the resistance here proved to be heavy and catalyzed a swift decline.
One interesting technical pattern that appears to be predicting when Bitcoin sees upswings is its cloud formation.
A popular analyst pointed out that the benchmark crypto has been posting rallies within its macro trading range each time the cloud is at risk of flipping bearish.
These rallies tend to be unsustainable, leading him to call them “scam pumps.”
“Someone doesn’t want the cloud to flip bear. Every time that it is inches from death crossing it is immediately followed by a scam pump,” he explained.
Image Courtesy of Teddy. Chat via TradingView
Here’s the Crucial Levels Bulls Need to Confirm as Support to Spark a Rally
There is one level that could spark an intense rally – assuming that bulls are able to confirm it as support.
This level is $9,500, and its previous status as a strong resistance level means that bulls could post a support-resistance flip if they are able to ardently defend it.
One analyst believes that this is crucial for bulls and could spark a wild rally into the five-figure price region.
“BTC LTF Update: Price nicely back above this $9500 level that is so crucial for bulls to flip into support if we want to head higher, I would love to get a fresh long placed on the retest as long as it continues to show signs of supporting PA. No reason for me to be short,” he explained.
Image Courtesy of Cactus. Chat via TradingView Featured image from Shutterstock. Charts from TradingView.
