After a precipitous drop to $7,700 this weekend, Bitcoin (BTC) bulls have managed to reclaim some ground. While the cryptocurrency market hasn’t flipped decidedly bullish yet, Bitcoin has found itself up by 6% in the past 24 hours, moving to $8,500 in a steady trend upward.
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Despite not showing the qualities of a fully-fledged bullish reversal, analysts say that this recent bounce is a sign of good things to come. Whether or not this materializes in an imminent move to fresh all-time highs remains to be seen, however.
Bitcoin Technicals Flip Bullish
Yesterday, all analysts and their mothers were calling for Bitcoin to fall to the low-$7,000s. One analyst, for instance, said that the cryptocurrency seems poised to collapse due to a number of factors: a lack of extreme negative funding, “increasingly negative delta at range support”, a perceived exhaustion in buying support, and large volume imbalances all implying that Bitcoin has a bearish skew heading into coming daily trading sessions.
True to its inherent volatility, however, Bitcoin reversed on Monday, trending higher to $8,500 as laid out earlier. This unexpected recovery puts the cryptocurrency market in a good position technically, per a number of analysts.
Firstly, the move to $8,300+ is allowing the cryptocurrency to regain a key short-term support level, as CNN-featured analyst Luke Martin recently pointed out.
Secondly, macro investor and gold proponent Dan Tapiero recently pointed out that the Bitcoin price chart has printed a massive bull signal. In a tweet, the institutional investor noted that the TD Sequential indicator, which is a time-based technical indicator, has drawn a buy 9 signal. Tapiero noted that the last time that this buy signal was seen was in January 2019, when the cryptocurrency traded at $3,600. What followed, of course, was a massive move to $14,000 over the course of the following months.
Bitcoin might put in a perfected TD 9 buy signal today. Last time I pointed out it disappeared on close. (Thanks to @TommyThornton for catching.) Very important to watch 5pm "close" to confirm. Rare buy signal last at 3600 Jan'19 came right before large multi-month 400% rally. pic.twitter.com/iBVKR3bkR9
— Dan Tapiero (@DTAPCAP) September 30, 2019
And lastly, the Fisher Transform, a trend indicator, recently saw a bullish crossover on Bitcoin’s daily chart, implying that the cryptocurrency may soon be subject to some upward momentum.
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Fundamentals Back a Price Recovery
The fundamentals seem to support a price recovery as well. Speaking to The Independent in the week of last week’s price decline, eToro analyst Simon Peters remarked that with Bitcoin’s hash rate still strong, “and adoption of crypto still moving forward at pace, we could see the price rise back up to $10,000 within the space of the next month.”
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BitBull Capital CEO Joe DiPasquale has echoed this, arguing that since the fundamentals of the Bitcoin network “remain strong”, a move higher — one that could potentially bring Bitcoin back to five digits — could take place in the “coming days”.
Indeed, this industry recently saw an array of news events, which we covered in our latest Crypto Tidbits report, that may only be a boon for the adoption of Bitcoin. These include but aren’t limited to Bitcoin’s hash rate recently hitting 108 exahashes per second, sources revealing that the Venezuelan government owns Bitcoin and Ethereum through a state-owned enterprise, SoFi and Boerse Stuttgart launching their own crypto platforms, and a massive adoption event in France.
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