Late last month, Bitcoin (BTC) suddenly exploded higher. In under 24 hours, the leading cryptocurrency shot from $7,300 to $10,600 in a now-historic pump that caught countless traders slacking.
This move was decisively bullish, as it was, after all, the fourth-largest daily move in Bitcoin’s history, and the largest daily move in over seven years.
For some reason or another, however, a number of analysts have maintained a bearish attitude after this move. One trader, for instance, noted that Bitcoin’s three-day Relative Strength Index remains in “bear market” territory, while the recent move higher was a textbook signal for a downward trend continuation.
This bearish bias may be non-sensical though, according to SmokeyXBT, a well-followed trader.
Related Reading: Research Firm: Bitcoin Price Bottomed at $7,300, Recovery Possible
Bitcoin Bear Case Makes No Sense?
Smokey recently noted that he “isn’t quite sure how people can have a strong bias here.” While he did admit that Bitcoin has yet to break above a trendline resistance and the weekly horizontal resistance of $9,600, he noted that BTC has decisively reclaimed $9,111 — a level which has been essential for the cryptocurrency since May.
What’s more, the buying volume on the reclamation of this key support was higher than it was on the breakdown, implying that bulls are attempting to assert control over the market.
Not quite sure still how people can have a strong bearish bias here. Yes, we haven't broken the trendline resistance + the weekly res around 9600. BUT, we reclaimed 9111 + volume on the reclaim > volume on the breakdown
Maybe I'm just completely stupid but this isn't bearish imo pic.twitter.com/JKiRys5fzt
— Smokey (@SmokeyXBT) November 3, 2019
Related Reading: Analyst: Bitcoin May See 30% Rally to $12,000 as Price Breaks Out
Smokey isn’t the only analyst thinking that Bitcoin is looking strong after holding in the low-$9,000s for days now. The Crypto Dog recently quipped that Bitcoin “looks like a launchpad.” Backing his quip, Dog looked to two resistance levels, which BTC has established over the past week. Recently, the cryptocurrency quietly broke above them, showing that the longs are starting to gain control.
Related Reading: Institutions Accrue Bitcoin Long Positions as Price Looks to Break Past $9,300
Featured Image from Shutterstock
