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After drifting lower throughout the day yesterday, Bitcoin’s bulls have attempted to push the cryptocurrency higher and have been able to propel BTC’s price above its 20-day EMA for the first time in over a month.
Today’s tempered bullishness may help the cryptocurrency climb higher in the near-term, and one prominent analyst is noting that BTC has been able to form a coveted EMA bull cross, which could mean that significantly further gains are imminent.
Bitcoin Climbs Towards $8,500 as Technical Formations Shape Up
At the time of writing, Bitcoin is trading up just under 1% at its current price of $8,440, which marks a notable climb from its daily lows of roughly $8,200 that were set yesterday.
Because Bitcoin has been caught in a wide trading range between roughly $7,800 and $8,800, without a major influx of buying or selling pressure, as long as it is in this range it may remain unclear as to where the crypto’s price is heading in the near-term.
It is important to note that analysts do anticipate BTC to incur significant volatility in the near-term that may determine how it trends for the coming months, as its Bollinger Bands are beginning to pinch.
“$BTC – with three weeks of sideways and the bbands starting to pinch, Bitcoin price could see some volatility soon. Good news is the price is above the 20-day MA for the first time in a month,” Josh Rager, a popular cryptocurrency analyst on Twitter, explained while pointing to the below chart.
https://twitter.com/Josh_Rager/status/1183371245863231490
BTC Forms Bullish EMA Cross, But Faces Multiple Strong Resistance Levels
This volatility may ultimately result in Bitcoin surging higher, as it recently formed a bullish EMA cross that may allow it to blast past the multiple resistance levels that lie directly in front of it.
Big Chonis, another popular cryptocurrency analyst on Twitter, spoke about this in a recent tweet, explaining that where BTC’s weekly candle closes tonight could determine how it trends in the near-term.
“$BTC – GOOD MORNING #BITCOIN: First EMA Bull cross on the 1hr chart since the breakdown a couple days ago…still a ways to go to test higher resistance levels…Weekly candle closes tonight… 38.2 current resistance,” he explained in a tweet.
First EMA Bull cross on the 1hr chart since the breakdown a couple days ago…still a ways to go to test higher resistance levels…Weekly candle closes tonight… 38.2 current resistance pic.twitter.com/brRQ1MP1Hu
— BIG Chonis (@BigChonis) October 13, 2019
Assuming that BTC has a bullish weekly close, it is highly probable that it will post significantly further gains in the coming week.
Featured image from Shutterstock.
