Bitcoin and the aggregated crypto markets have been caught in the throes of volatility over the past several days, with BTC struggling to break into the $12,000 region on multiple occasions, while finding some support in the upper-$11,000 region.
One analyst is now noting that Bitcoin is nearing a critical junction that could set the tone for which direction BTC trends next, and one model suggests that the crypto is currently “deep in bull territory.”
Bitcoin Struggles to Break Above $12,000 as Bullish Momentum Falters
At the time of writing, Bitcoin is trading up nominally at its current price of $11,750, which is down slightly from its daily highs of roughly $12,000.
Over a one-week period it becomes clear that BTC’s bulls may be struggling to push the cryptocurrency higher, as it has attempted and failed on multiple occasions to decisively move into the $12,000 region, and has been rejected at this price level on more than three occasions over the past seven days.
Although it remains unclear as to whether or not $12,000 is an insurmountable resistance level, or if its resistance is weakening with each time Bitcoin visits it, it is clear that the crypto has been in a strong uptrend over the past six months.
Assuming that Bitcoin is able to break above the $12,000 region in the near future, it is highly probable that the next region of resistance will exist at its previously established 2019 high around $13,800, which is where the crypto sharply surged to before incurring significant selling pressure in late-June.
Analyst: BTC May Already Be Deep in Bull Territory
Importantly, the 2019 bull trend may have bolstered BTC’s technical strength in a way that allows it to continue climbing throughout the second half of the year, and analysts are now noting that the crypto may currently be “deep in bull territory.”
CL, a popular crypto analyst on Twitter, spoke about this in a recent tweet, explaining that Bitcoin’s 200-day Kijun-Sen line typically is a critical junction that is emblematic of where BTC goes next.
“A lot of people keep track of 200 day MA, EMA – Here is what the 200 day Kijun-Sen line look like on Bitcoin. Crossing below this line has historically proved fatal for bulls, and crossing back above the line signified end of bear markets. We’re deep in bull territory,” he explained in a recent tweet.
A lot of people keep track of 200 day MA, EMA – Here is what the 200 day Kijun-Sen line look like on Bitcoin.
Crossing below this line has historically proved fatal for bulls, and crossing back above the line signified end of bear markets.
We're deep in bull territory. pic.twitter.com/M9dYog4m03
— CL (@CL207) August 9, 2019
Assuming that this technical indicator is as reliable now as it has been in years past, it is a strong possibility that Bitcoin will extend its upwards momentum in the weeks and months ahead.
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