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On Sunday, Bitcoin (BTC) found itself suffering, with bulls failing to step in to save the cryptocurrency from falling through the ever-important $8,000 support level.
Related Reading: Crypto Tidbits: SEC Declares Bitcoin a Non-Security, Ethereum DeFi Gains Traction, PayPal Leaves Libra
By Monday morning, the Bitcoin price hit $7,800 — a level that analysts said would be a “make or break” for the cryptocurrency bull market.
However, at the 11th hour, bulls finally made their presence known. As seen above, when all seemed lost — analysts were expecting a precipitous drop to $6,500 — Bitcoin finally mounted a recovery.
As of the time of writing this, the cryptocurrency has rallied by 5% to retake $8,250.
While the reversal is not yet set in stone, many analysts are optimistic that this recovery from the important $7,800 level may precede further gains.
Bitcoin Ready to Head Higher
CNN-featured analyst Luke Martin, the founder of CoinistResearch, recently noted that if Bitcoin can close some short-term candles (4-hour, 12-hour) above the $8,300 zone, he would expect the bullish momentum to bring BTC to $8,700 to $9,000.
$BTC showing some strength to kick off the week.
If price can close above the 8300 zone, I would expect follow through to atleast 8700-9k area. pic.twitter.com/ZUEctTM1ys
— Luke Martin (@VentureCoinist) October 7, 2019
Prominent trader Crypto Rand echoed this optimism, recently noting that Bitcoin’s daily chart —should it hold until the close in five hours — looks much like a textbook tweezer bottom, marked by a bullish engulfing candle after a large red candle lower.
Related Reading: Bitcoin Price to Make New High By Early-2021, Investor Declares
According to Rand’s analysis, the tweezer bottom is a formation that tells traders the following tidbits of information:
- Market has reached bottom at the same price level.
- The engulfing candle suggests that more buyers have entered the market and have begun to dominate of the market.
- More and more buyers are likely to enter and contribute, pushing prices higher as the market bottomed.
Indeed, as Amsterdam Stock Exchange trader Crypto Michaël recently noted in the below analysis, both Bitcoin on short-term and long-term time frames is looking strong, with bullish trendlines and consolidation patterns forming.
Bigger view; looks pretty good to me. We might have got our new trendline for bullish continuation here. Looks quite similar.
Smaller view; Nice, range low still holding and moved up to range high. Probably continuation of the ranging here. Great daily. pic.twitter.com/fqaXCySXqD
— Michaël van de Poppe (@CryptoMichNL) October 7, 2019
Related Reading: Why a Bloomberg Opinion Writer Expects a Bitcoin Bull Run
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