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After plummeting below $8,000 overnight, Bitcoin’s bulls were able to propel the crypto slightly higher, showing signs that bulls are not ready to let the cryptocurrency drop lower in the near-term, which could mean that bulls will garner greater strength in the near-term that could help propel BTC higher.
Analysts are noting that Bitcoin likely has further room to run in the near-term, but it is important to note that a strong resistance level that exists just slightly above Bitcoin’s current price could halt this rally and force BTC to extend its recent downtrend.
Bitcoin Climbs from Daily Lows as Bulls Attempt to Spark Rally
At the time of writing, Bitcoin is trading up just under 1% at its current price of $8,090, which marks a climb from its recent lows of $7,900 that were set yesterday when the crypto lost the support it had previously built at $8,000.
Today’s bounce pales in comparison to even that seen earlier this week when Bitcoin ran to highs of just below $9,000 before it found significant resistance that sent it reeling lower, and the lower highs that BTC has been setting in the time since this fleeting rally may point to an underlying weakness amongst the cryptocurrency’s bulls.
Bitcoin has established the upper-$8,000 region as support over the past couple of weeks, which was previously a resistance level that was formed when BTC was trapped beneath this level overnight.
Big Chonis, a popular cryptocurrency analyst on Twitter, spoke about this in a recent tweet, saying:
“$BTC – previous resistance now acting as support…#bitcoin,” he said while pointing to the below chart.
$BTC – previous resistance now acting as support…#bitcoin pic.twitter.com/ddeoVoLdyQ
— BIG Chonis (@BigChonis) October 17, 2019
Analyst: BTC May Have Further Room to Run Before Downtrend Continues
In the near-term, analysts are noting that Bitcoin may further extend its upwards momentum before it hits its current resistance level that will likely halt its rally and lead it to incur further downside.
Big Chonis also spoke about this resistance level in a recent tweet, noting in his chart that the resistance level currently sits around $8,200, which could be where BTC surges to before it revisits its range lows in the upper-$7,000 region.
“$BTC – a little running room to test this consistent line of resistance on the #bitcoin 6hr chart,” he noted.
$BTC – a little running room to test this consistent line of resistance on the #bitcoin 6hr chart… pic.twitter.com/zyAIdTDwkR
— BIG Chonis (@BigChonis) October 17, 2019
The coming few hours may confirm the above technical analysis, which may mean that Bitcoin will run further before it continues its recently incurred downtrend and sets new multi-month lows.
Featured image from Shutterstock.
