Bitcoin
These Bullish Factors Suggest Bitcoin is Poised to Post an Explosive Move Higher
Cole Petersen | Oct 04, 2020 | 21:00
- Bitcoin’s price has remained steady despite the crypto market being struck multiple blows by recent developments
- Last week, the market faced a $150m KuCoin hack, which was closely followed by the CFTC charging the BitMEX co-founders
- The weakness created by these events was compounded by turbulence within the stock market due to President Trump’s health
- Despite all this, Bitcoin’s price has remained squarely within the trading range it has been caught within over the past few weeks
- One analyst is noting that its strength in the face of this indicates that an explosive move higher is brewing
Bitcoin and the entire cryptocurrency market have been consolidating for the past few days, after seeing some slight selling pressure earlier in the week.
This selling pressure resulted from a variety of different factors, but it wasn’t enough to alter the crypto’s underlying market structure.
While speaking about where he expects the market to trend next, one analyst noted that Bitcoin could be gearing up to see an explosive move higher in the near-term.
This move could help provide a tailwind for the entire cryptocurrency market, potentially sending altcoins also surging higher in tandem.
Bitcoin Shows Signs of Strength Despite Bearish News Events
At the time of writing, Bitcoin’s price is trading up just under 1% at its current price of $10,600, which is around the point at which it has been trading at throughout the past several days.
Earlier this week, news surrounding the CFTC’s charges against the three co-founders of popular margin trading platform BitMEX rocked the market and caused Bitcoin’s price to fall from $10,900 to $10,400.
The cryptocurrency has been stable ever since, and it appears that the initial selloff was simply a knee-jerk reaction to the news.
This came about concurrently with fears surrounding the recent $150m KuCoin hack, as well as uncertainty within the traditional markets.
Analyst: BTC Likely to See Strong Push Higher as Strength Mounts
One analyst explained that a combination of strength in the face of multiple bearish developments and on-chain metrics flipping bullish seems to indicate that a push higher could be imminent for Bitcoin in the near-term.
“Bitmex FUD & Trump [News] barely made a dent on the BTC price. That’s pretty telling on the strength. On-chain metrics are bullish as well. I see no reason to be bearish on BTC unless the stock market crashes. The risk reward here is pretty sweet for spot BTC hodling.”
If Bitcoin pushes higher in the near-term, it could further confirm this sentiment and lead to an influx of buying pressure.
Featured image from Unsplash. Pricing data from TradingView.
