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Bitcoin Decisively Retakes $8,000: What’s Next for Crypto?

Avatar Nick Chong 3 months ago

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.)

Related Reading: Analysts Think Ripple’s (XRP) Price Chart is “Absolute Trash”: Here’s Why

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.

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.

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.

Related Reading: A Big Plunge to Sub-$100 for Ethereum Is Imminent If This Happens
Featured Image from Shutterstock
Nick Chong

Since 2013, Nick has shown interest in Bitcoin and cryptocurrencies. He has since become involved in the industry as a full-time content creator, working for NewsBTC, Bitcoinist, LongHash, among other outlets. Aside from covering...

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