Bitcoin

Bitcoin’s Bull Case Remains Valid as Buyers Fight to Maintain $9,000

Cole Petersen | May 22, 2020 | 23:00

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• Bitcoin has been flashing some overt signs of weakness throughout the past several days and weeks
• This has been rooted largely in its inability to break into the $10,000 region after facing multiple strong rejections here throughout the past several days
• Analysts are now noting that the cryptocurrency remains in a position to see further upside, however, as long as it is able to hold above a key ascending trendline
• It also could soon rally to the mid-$9,000 region or higher if it is able to close its daily candle above a key technical level

Bitcoin and the aggregated crypto market have flashed some signs of weakness as Bitcoin hovers above its key support level at $9,000.

Its recent decline from highs of $9,800 has come about as the result of multiple strong rejections within the upper-$9,000 region, with the latest decline being triggered by news of a 2009-era wallet transferring 50 BTC.

It doesn’t appear that the technical damage done by this latest decline has been enough to invalidate all of its strength, as analysts are now noting that it could be positioned to push higher in the near-term.

Bitcoin Remains Above Key Ascending Trendline

At the time of writing, Bitcoin is trading down just over 1% at its current price of $9,140.

This marks a notable upswing from daily lows of $8,800 that were set during a decline seen overnight.

Buyers ardently absorbed this dip and helped the cryptocurrency subsequently climb higher.

It does appear that Bitcoin’s reaction to this level indicates that it has some underlying strength in spite of its overt weakness seen throughout the past several days and weeks.

One analyst recently pointed to an ascending trendline that the crypto has defended as a reason why its uptrend still remains strong in the near-term.

The analyst offered a chart showing this trendline, explaining that the cryptocurrency’s bull case remains valid.

“Bitcoin short term bull case still valid with today’s clean bounce off that rising trend-line.”

Image Courtesy of Big Cheds

BTC Could Rally into Mid-$9,000 Region Due to Cloud Pattern 

The aforementioned trendline isn’t the only thing that could boost Bitcoin in the days and weeks ahead.

Analysts are also noting that the cryptocurrency’s cloud resistance is currently being pierced, with a daily close above the cloud’s lower boundary potentially being enough to spark an uptrend.

This uptrend could lead the cryptocurrency up to the mid-$9,000 region, one analyst noted.

“Success in closing above the cloud, expecting mid 9s~”

Image Courtesy of Teddy

How the crypto trades heading into its daily close should offer significant insights into where it trends in the weeks ahead.

Featured image from Shutterstock.