Bitcoin (BTC) has continued to rip higher over the past few hours into the daily close. As of the time of writing this article, the cryptocurrency has just breached $8,300 for the first time in some six weeks, reaching as high as $8,360 as bulls have stepped in en masse.
While some say it is too early to tell whether or not this is a full-on reversal, analysts are becoming certain that Bitcoin has legs to run to at least $9,000 from here. Here’s why.
Bitcoin Price Has Legs to Run, Analysts Say
CryptoWolf pointed out that with Bitcoin decisively retaking $8,090, the top of a horizontal resistance level that has acted as a key region in the past, BTC is cleared for a move to $9,500 — around 13.5% above current prices.
Indeed, the low-$8,000s previously acted as a strong base for a rally and $9,500 acted as a key resistance, making it possible that a similar move could take place.
8090 HIT. pic.twitter.com/GY3go2hWiH
— CryptoWolf (@IamCryptoWolf) January 7, 2020
The technicals agree that the momentum for the cryptocurrency market remains positive.
Per previous reports from NewsBTC, trader Byzantine General noted that while BTC is slightly stalling, the four-hour chart just printed a 50 exponential moving average and 200 exponential moving average bull cross, suggesting bulls are decisively in control.
Also, Adaptive Capital’s new analyst, CL, recently argued that Bitcoin’s four-hour chart is showing clear signs of a reversal on a medium-term basis. The trader and chartist specifically looked to the Bollinger Bands indicator, which he claims shows a bullish trend is currently emerging:
“When price starts deviating away from the 4hr 200MA, out of the bands, especially after consolidation, and a BB squeeze, a new trend usually emerges. There is not much more to say, I will be buying dips. Send it.”
When price starts deviating away from the 4hr 200MA, out of the bands, especially after consolidation, and a BB squeeze, a new trend usually emerges.
There is not much more to say, I will be buying dips. Send it. pic.twitter.com/GB1RA4M62n
— CL (@CL207) January 7, 2020
Also, Josh Olszewicz, analyst at Brave New Coin, found that the price of Bitcoin on Coinbase is at a slight premium to the price of the leading cryptocurrency on Bitfinex. This is purportedly an extremely bullish signal that underscored much of the cryptocurrency market’s rally seen in 2019.
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