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After facing a sharp drop into the upper-$6,000 region yesterday morning, Bitcoin’s bulls have stepped up and propelled the crypto higher, laying the foundations for the cryptocurrency’s recent lows to be a mid-term bottom for BTC.
Analysts now widely expect Bitcoin to see further gains in the short-term, but it is important to note that the cryptocurrency is still firmly caught in a mid-term bear trend, which means that it may ultimately see further downside in spite of its near-term bullishness.
Bitcoin Climbs from Recent Lows as Bulls Fight Back
At the time of writing, Bitcoin is trading up over 2% at its current price of $7,320, which marks a notable climb from its daily lows of roughly $6,700 that were set during BTC’s latest sell-off.
This level has long been viewed as a strong level of support for the cryptocurrency, and its bullish price action in the time since it visited this level confirms that this is in fact a strong level of support, and may signal that further bullishness is imminent in the near-term.
Further supporting this notion is the fact that Bitcoin has broken above the upper boundary of a clearly defined pennant that it formed in the time following its recent drop, which may signal that further upwards momentum is imminent.
Big Cheds, a popular cryptocurrency analyst on Twitter, spoke about this in a recent tweet while pointing to the chart seen in the below tweet.
“$BTC #bitcoin early action favors bulls,” he concisely noted.
$BTC #bitcoin early action favors bulls pic.twitter.com/D1kPYEO39h
— Cheds Trading (@BigCheds) November 23, 2019
Economist: BTC May Climb to $8,000, But Bear Market Remains Strong
As for where this upwards momentum may lead BTC’s price in the near-term, Alex Krüger, a popular economist on Twitter who focuses primarily on cryptocurrencies, explained that he believes BTC will visit $8,000 shortly, but that further downwards momentum is imminent.
“$BTC views – this is a bear market, price action says so – price set a local bottom today – $8000 will trade again soon => short above – good spots for longs: $6400/$6000 – high odds halving won’t be bullish – many miners will capitulate if hash growth continues unabated,” he explained.
$BTC views
– this is a bear market, price action says so
– price set a local bottom today
– $8000 will trade again soon => short above
– good spots for longs: $6400/$6000
– high odds halving won't be bullish
– many miners will capitulate if hash growth continues unabated— Alex Krüger (@krugermacro) November 23, 2019
Assuming that the upcoming mining rewards halving is not a bullish catalyst for Bitcoin’s near-term price action as Krüger believes, BTC may see significant further losses in the coming weeks and months.
Featured image from Shutterstock.
