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Bitcoin (BTC) incurred a sudden influx of buying pressure yesterday that sent its price surging past its previous resistance levels and allowed it to gain a more solid footing within the $8,000 region. This movement proved to be highly bullish for the aggregated crypto markets, as multiple major altcoins posted notable gains.
Analysts are now noting that BTC currently has a bullish market structure but are also noting that it may first need to dip back towards $8,300 before it is able to gain enough upwards momentum to propel it towards $9,000.
Bitcoin Rally Stalls; Will It Extend Further?
At the time of writing, Bitcoin is trading up over 3% at its current price of $8,485, which marks a notable climb from its daily lows of $8,200.
It is important to note that the upper-$8,300 level was previously Bitcoin’s near-term resistance, and its break above this level opened the gates for significantly further gains. Despite this, BTC’s bulls have not yet been able to step up and push the crypto’s price higher, which is leading some investors to question the long-term significance of this rally.
Popular cryptocurrency analyst HornHairs, however, explained in a recent tweet that Bitcoin’s 2-day candle chart shows a bullish market structure break that could mean it will test its near-term resistance level in the upper-$8,000 region, which will be a price that is critical for bears who want to prolong BTC’s recent downtrend to defend.
“$BTC #Bitcoin: 2D chart just landed a bullish market structure break. Previous floor + monthly pivot looks ready to be tested… I’ll be taking partial profits there,” he explained.
2D chart just landed a bullish market structure break. Previous floor + monthly pivot looks ready to be tested… I'll be taking partial profits there. pic.twitter.com/sYZ1Rj46If
— HornHairs 🌊 (@CryptoHornHairs) October 10, 2019
Analyst: BTC May Retest $8,300 Before Uptrend Continues
Despite the bullish market structure that HornHairs referenced in the aforementioned tweet, it is important to note that he also believes that Bitcoin may dip towards $8,300 before it begins climbing higher in the near-term.
“$BTC #Bitcoin: In the meantime, if we do dip from here, $8,300s are a confluent level of support where i’d be looking for additional long exposure,” he said.
In the meantime, if we do dip from here, $8,300s are a confluent level of support where i'd be looking for additional long exposure. pic.twitter.com/qsFWOQpvaL
— HornHairs 🌊 (@CryptoHornHairs) October 10, 2019
It does appear that Bitcoin is currently trading at a key price region, as which direction it moves in the near-term could provide significant insight into how it will trend for the coming weeks and months.
Featured image from Shutterstock.
