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.)
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.
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
Related Reading: A Big Plunge to Sub-$100 for Ethereum Is Imminent If This Happens
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