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Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident

Are Higher Lows A Sign of a Growing Bitcoin Bull Run?

Reynaldo Marquez
Reynaldo Marquez
1 year ago
2 mins read
Bitcoin

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Bitcoin has seen a lot of sideways price action during this week but might be able to extend its gains and regain higher grounds. The cryptocurrency continues to trade in the green and seems to be showing signs of further short-term appreciation.

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At the time of writing, Bitcoin trades at $23,200 with 9% profits over the past week and 1% profits in the last 24 hours.

Bitcoin BTC BTCUSDT
BTC’s price trends moving sideways on the 4-hour chart. Source: BTCUSDT Tradingview

Over the last week, Bitcoin has provided more clarity about its price direction. According to a report from Arcane Research, the cryptocurrency has managed to slowly break above the critical resistance levels at $20,000, $20,700, and $23,000, this coincides with the conventional definition of an uptrend, as defined by Investopedia:

An uptrend describes the price movement of a financial asset when the overall direction is upward. In an uptrend, each successive peak and trough is higher than the ones found earlier in the trend. The uptrend is therefore composed of higher swing lows and higher swing highs. As long as the price is making these higher swing lows and higher swing highs, the uptrend is considered intact.

Arcane Research noted the following on BTC’s recent bullish momentum and its capacity to break previous resistance turning them into critical support:

The bitcoin price is currently at an interesting level. $23k acted as resistance in mid-June and two weeks ago and could potentially be flipped to a support level this week. If the price holds at current level, it will mark another higher low and be a bullish signal.

In that sense, Arcane Research expects Bitcoin to continue flirting with the $24,000 resistance and potentially break above it. This would signal potential continuation of the bullish trend with a potential target of $27,000 and $28,000, on lower timeframes.

Bitcoin BTC BTCUSDT AR 1 Chart 1
BTC’s price on an uptrend since July as it makes higher lows on the 4-hour chart. Source: Arcane Research

Why Bitcoin Is Likely To Sustain Its Gains

Bitcoin’s price bullish potential has been capped by macro-economic factors, the collapse of major crypto companies and ecosystems, and an increase in selling pressure from BTC miners. The latter have had to sell more of their BTC stock to meet debt obligations in the face of higher energy prices and low BTC prices, according to a report by QCP Capital.

In that sense, Bitcoin will have a limited capacity to break above $28,000. The trading desk coincides with Arcane Research, BTC’s price might revisit those levels but it’s unlikely to see another massive rally like the one experienced in 2020.

Related Reading

bitcoinbitcoin btc btcusdt

Why You Should Be Wary Of The Bitcoin Rally With BTC At $22,000

1 year ago

On the contrary, BTC’s price might trade sideways as it recovers higher levels and has it records lower lows at three critical support zones: $20,700, $17,500, and $10,000. The latter seems likely to be revisited at some point in 2022, QCP Capital claims.

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Reynaldo Marquez
Reynaldo Marquez

Reynaldo Marquez

A literature major, Reynaldo Márquez has been deeply immersed in the crypto industry since 2017. His journey began with translating articles for various crypto news outlets, a role he took on with zeal. In 2018, amidst a challenging market, he embraced his first writing assignment, demonstrating his unwavering commitment to the nascent industry and the promise of change it bears for many people worldwide.
In March 2021, he joined the prestigious crypto news outlet NewsBTC and Bitcoinist, where he not only reported on the latest crypto news but also had the privilege of interviewing some of the industry's most influential figures. A year later, his dedication and hard work were recognized, and he was promoted to Managing Editor, a position he currently holds with pride.
He believes in honesty, good communication, hard work, and the power of cryptocurrency and its potential to transform people's lives, especially those alienated by the legacy financial system. Born in 1992 in Venezuela, Reynaldo is familiar with how governments and central banks can negatively affect people, their everyday lives, and their futures by creating inflation and erasing their hopes for a better future. Thus, like many Venezuelans, he embraced this new technology to help him and his family navigate difficult times.
In another life, Reynaldo would have pursued a career as an investigator, most likely tracking down the origins of the Cyberpunk movement with the publication of William Gibson’s ‘Neuromancer.’ The intersection between fiction and reality, with the materialization of Bitcoin in 2009, would have allowed him to dive deep into the crypto sphere as something more than a financial phenomenon but also a cultural shift in society that was brewing since the XX century, and maybe even sooner, in the XIX century with the publication of Henry David Thoreau’s ‘Civil Disobedience.’
But that’s for another life. In this one, Reynaldo has been trading to improve his trading skills. Since 2023, he has been trying to learn Python to create successful strategies and find ways to execute them. It is a difficult task, which continues to keep him busy today and will most likely continue to keep him busy in the near and long term.
In his free time, he enjoys lifting heavy objects, reading, watching movies, and listening to his favorite music. Some of his favorite authors are Walt Whitman, William Faulkner, Allen Ginsberg, James Baldwin, Raymond Carver, Ray Bradbury, George Orwell, Mario Vargas Llosa, Reinaldo Arenas, Rafael Cadenas, and many others. Lately, he has been primarily interested in reading about dystopic societies, a topic that deeply resonates with the crypto industry.
Since 2023, he has lived in Spain with his wife. He loves the weather, the food, and the people and their culture. They both expect to travel much more within the country they now call home and beyond its border. He hopes to retire with his wife, maybe in a quiet place near a beach, but most likely in a city close to a library and a university with his kids and, hopefully, grandkids.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

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