Bitcoin
Bitcoin Just Broke a Crucial Trendline as Bulls Take Aim at $12,000
Cole Petersen | Aug 30, 2020 | 16:08
- Bitcoin and the entire crypto market have been flashing some signs of strength throughout the past couple of days
- BTC has firmly moved into the mid-to-upper $11,000 region, with bulls now trying to garner enough strength to push it up towards its high time frame resistance at $12,000
- Whether or not this level is tapped in the near-term should offer some significant insights into its near-term trend
- Analysts are now pointing towards a recent trendline break as one positive development for the cryptocurrency
- It has also been able to reclaim its 200-day moving average following a brief break beneath it, which is a sign that the bull market is still going strong
Bitcoin and the crypto market have had a positive weekend, with the benchmark cryptocurrency being able to climb slightly higher while large altcoins like Ethereum begin rallying.
This has created a tailwind that has lifted smaller altcoins significantly higher, with some clocking parabolic gains throughout the past few days.
Analysts are noting that this bullishness may persist in the near-term, as Bitcoin’s recent pullback only caused it to break below a trend-defining level for a brief period. It has since been reclaimed by bulls.
The latest push higher also allowed BTC to break above one technical level that had been suppressing its price action. Analysts are now anticipating it to see further upside in the near-term.
Bitcoin Maintains Above Crucial Levels During Latest Dip
At the time of writing, Bitcoin is trading up just over 1% at its current price of $11,615, marking a massive upswing from its weekly lows of $11,100 that were set just a few days ago.
The cryptocurrency’s strong response to this dip shows that bulls still have control over the crypto’s mid-term trend.
This is further elucidated by BTC’s ability to break back above its 200-day moving average following a brief dip below it.
“BTC back above 20DMA, post what looks like correction in a very bullish trend,” one analyst explained.
Image Courtesy of Cantering Clark. Chart via TradingView.
BTC’s Latest Upswing Shatters Key Resistance
Bitcoin’s push past $11,600 today also allowed it to shatter a key trendline that was previously suppressing its growth.
One analyst pointed to this breakout in a recent tweet, highlighting the strength this descending trendline has expressed since BTC peaked at $12,400 a few weeks ago.
Image Courtesy of Teddy. Chart via TradingView.
How Bitcoin trends in the coming few days should offer significant insight into its near-term trend.
Featured image from Unsplash. Charts from TradingView.
