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This Signal Shows $11k For Bitcoin is Likely, Analyst “Very Bullish” on These Trends

Avatar Cole Petersen 2 months ago

Bitcoin and the aggregated crypto market have been caught within the throes of a firm and unwavering uptrend since the beginning of the year. This uptrend has allowed BTC to gain a solid foothold within the $8,000 region, which appears to be where it is beginning to find some resistance.

It is important to note that there are a few trends that signal that this recent rally is much more than just a fleeting pump that will be followed by further downside, as one prominent analyst is noting that a few key trends elucidate why this rally is so important from a macro perspective.

Bitcoin Maintains Position Within $8,000 Region as Buyers Absorb Intense Selling Pressure

At the time of writing, Bitcoin is trading up just under 2% at its current price of $8,110, which marks a notable climb from its recent lows of $7,700 that were set just a couple of days ago when bears attempted to generate enough selling pressure to reverse the recent uptrend.

Multiple analysts have pointed out that $7,700 is a key support region for Bitcoin, as this was previously a strong resistance level and is around where BTC’s EMA8 currently exists.

Scott Melker, a popular analyst who now focuses primarily on digital assets, spoke in a recent blog post about Bitcoin’s recent price action, telling his followers that one factor that could mean BTC will soon see significantly further upside is the existing CME gap around $11,000. Reports indicate that 95% of these gaps on the CME Bitcoin futures fill, suggesting that there’s a high likelihood BTC will reach that price point in the future.

“A note on CME Gaps – I am still not a huge believer, but they are worth watching because everyone has their eyes on them… There is a bullish aspect to the narrative – and that is the pink gap on the CME chart that still remains above 11K,” he noted.

Volume Trends Could Spell Trouble for BTC Bears in the Near-Term

Although Melker is cautious about relying too heavily on CME gaps, this isn’t the only bullish factor currently going for BTC.

He further goes on to note in the same post that price and volume have been rising in agreement throughout this latest rally, signaling that the recent uptrend is rock solid.

“During the rise from $6800 to $8400, volume was rising with price. Volume and price were in AGREEMENT, which is a sign of a solid trend,” he said.

Because this trend is solid and because bulls have been able to sustain Bitcoin’s price above its key support levels, there is a strong chance that this rally may be far from over.

Featured image from Shutterstock.
Cole Petersen

Cole is a cryptocurrency analyst based in Los Angeles. He studied at the University of California Irvine and has covered bitcoin and the crypto markets since 2017.

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