It has been a wild day for Bitcoin, with the cryptocurrency flying past the intense resistance it previously faced between $9,800 and $10,000, with its movement into the five-figure price region sending chills down the spines of BTC bears.
BTC is now fast approaching its weekly close, which will be a critical event that offers insight into the long-term significance of this movement, as a close above $10,000 will highly favor bulls.
Analysts are now noting that the cryptocurrency is on the cusp of entering its next parabolic cycle, which could suggest that it is about to see some major near-term gains.
Bitcoin Stabilizes Above $10,000 as Weekly Close Approaches
Because the cryptocurrency has been able to maintain the gains it incurred yesterday evening, it does appear that this latest upwards movement is much more than another fleeting rally, as it suggests that bulls currently have some major underlying strength.
The key event that is currently looming on the horizon is Bitcoin’s weekly close, which is set to occur in just a few mere hours.
Teddy, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that on a macro timeframe, a weekly close above $10,000 would be highly bullish for Bitcoin.
“BTC: Weekly range: – Trading above the range resistance – Testing a higher high. On larger timeframes, a successful close here would confirm a change in trend,” he explained while pointing to the chart seen below.
BTC Is About to Enter Yet Another Parabolic Cycle
A bullish weekly close could further validate the strong possibility that Bitcoin is about to enter its next major parabolic phase, as it does appear that BTC is currently reaching a critical level that has historically preceded parabolic rallies.
Mr. Anderson, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that BTC is being bolstered by a key multi-year trendline, and it is about to propel past a multi-month descending resistance.
“BTC: I love it when a good plan comes together. I had this one drawn out 6 months earlier. But, you can check the date on the Chart for when this became scenario ‘A’” he noted while referencing the key levels seen on the below chart.
I love it when a Good Plan comes together
I had this one drawn out 6 months earlier. But, you can check the date on the Chart for when this became scenario "A"
However, there are no crystal balls. The key is to have pts of failure & tangent plans from your pts of failure pic.twitter.com/ULZv0uSr0s
— Mr. Anderson (@TrueCrypto28) February 9, 2020
The coming few hours will be critical for determining Bitcoin’s future trend, as it does appear that the upcoming weekly close could be one of the most important the crypto has seen in ages.
Featured image from Shutterstock.