After falling by over 8% from the local top at $8,460, Bitcoin (BTC) has started to mount a comeback over the past few hours. The cryptocurrency, since hitting prices just under $7,700 earlier today, is now trading around $8,100, seemingly trying to retake the key $8,000 support region, which has been of historical relevance.
(This surge comes shortly after Elon Musk — yes, the Elon Musk that runs SpaceX and Tesla and also co-founded PayPal and a bajillion other companies — mentioned Bitcoin on Twitter. More information on that can be found at this link. We’re not saying this is correlated, but it is somewhat eerie.)
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While this move is recent, what are analysts thinking of this latest move in the BTC price? Do they expect it to have a wider effect on the crypto market’s trajectory?
What’s Next for Bitcoin After Move Back to $8,000
While not an entirely explosive move higher, the bounce from the $7,700 region is notable. Prominent cryptocurrency trader Josh Rager noted that Bitcoin “bounced and closed at support,” as marked on his chart.
This means that the “price doesn’t look bad [as it] held where it needed [to],” before adding that the recent close sets the stage for a tight Bitcoin range to form between $7,700 and $8,400, which could be a precursor to an explosion high ahead of Bitcoin’s May 2020 block reward reduction.
$BTC Update
Price bounced and closed at support
Watching for a potential new range to develop above the previous range
Price doesn't look bad and held where it needed – trade the ranges and be patient, stop worrying about $5k or $10k right now pic.twitter.com/73lFubZVqa
— Josh Rager 📈 (@Josh_Rager) January 10, 2020
Prominent Bitcoin trader Storm noted that according to a key trend indicator on the four-hour BTC chart, bulls remain in control (as of 20 hours ago), adding that he thinks it’s thus worth buying the cryptocurrency between $7,700 to $7,900 to factor in the potential upside.
Very nice 4H trend change on the accATR, definitely worth picking up spot 7700-7900 pic.twitter.com/hSLPM7iQtg
— storm (@stormXBT) January 9, 2020
It appears that a number of key indicators remain bullish as well, seemingly signifying that the recent 8% drop was a to-be-expected correction after a dramatic surge higher.
Price Needs to Retake $7,870 on Weekly Basis
Sure, the daily outlook for Bitcoin is starting to look positive again. Though, prominent trader HornHairs has noted that the cryptocurrency will need to close above $7,870 on Sunday (the weekly candle close), or else he will expect a dramatic ~25% move down to $6,000, for that close would confirm that BTC was trading in a clear macro bull trap.
We got the breakout, which was a good start, but as the weekly chart stands, it looks like a bull trap.
If we close below $7870 on Sunday, my expectations will be a move down to $6k. Very important next few days. Nothing conclusive until Sunday. pic.twitter.com/9V4Gia3b4n
— HornHairs 🌊 (@CryptoHornHairs) January 9, 2020
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