Bitcoin
Bitcoin Just Broke a Descending Trendline from 2017; Is the Bull Market Here?
Cole Petersen | Jul 27, 2020 | 18:00
- It has been a wild 24-hours for Bitcoin and the aggregated cryptocurrency market
- Following a long-held bout of consolidation, the benchmark digital asset is now breaking out and appears to be aiming for a test of its yearly high at $10,500
- BTC’s latest break above $10,000 is different from those seen previously and has so far proven to be far more sustainable
- Analysts are now noting that this movement has also allowed Bitcoin to shatter a multi-year descending resistance line formed since 2017
- This means major upside could be brewing in the near future
Bitcoin was able to incur some tremendous momentum yesterday that allowed its price to surge as high as $10,300.
In recent months, each visit into the five-figure price region has been short-lived, with the crypto facing multiple harsh rejections here.
It is important to note that this move appears to be far more sustainable than those seen previously, and analysts are widely expecting it to see further upside in the days and weeks ahead.
One factor to keep in mind is BTC’s ability to shatter a multi-year descending trendline. This is the first time it has broken this level since it was formed in 2017, and analysts believe it marks the start of something much larger.
Bitcoin Shows Signs of Strength Following Break Above $10,000
At the time of writing, Bitcoin is trading up nearly 4% at its current price of $10,300. This is around where its uptrend stalled following the overnight move.
This marks a notable climb from its multi-day lows of $9,300 that were set less than a week ago.
After BTC broke above the upper boundary of its prolonged consolidation channel between $9,100 and $9,300, bulls have been firmly in control.
As for where it might trend next, it does appear that $10,500 is the next heavy resistance level that bulls will likely set their sights on.
A rejection at this level would be grim for BTC, as it would mark the fourth time it has failed to surmount the selling pressure here.
BTC Posts Notable Breakout as Analysts Eye the Start of “Something Truly Massive”
One factor to keep in mind is that this latest push higher sent Bitcoin surging past a multi-year descending trendline that was previously guiding it lower.
While speaking about this level, one analyst noted that this could be the start of “something truly massive.”
“Would you believe me if I told you this is merely the beginning of something truly massive?”
Image Courtesy of Mohit Sorout. Chart via TradingView.
Unless Bitcoin does face another swift rejection at $10,500, it does appear that the cryptocurrency’s short-term outlook is beginning to reflect the brightness of its long-term outlook.
Featured image from Unplash. Charts and pricing data via TradingView.
