In a jarring early-morning movement, Bitcoin blew past the resistance it was previously facing within the upper-$6,000 region, with this rally allowing bulls to significantly bolster their near-term technical situation.
Analysts are now widely noting that the strength of this movement is likely to lead it significantly higher, with short positions getting punished.
One prominent veteran trader is now noting that he believes Bitcoin is poised to rally all the way towards $8,400 in the near-term, as it just confirmed a highly bullish technical pattern.
Bitcoin Sees Explosive Movement as Bulls Catalyze Massive Upside
At the time of writing, Bitcoin is trading up just under 13% at its current price of $7,020, which marks a notable climb from daily lows of $6,200 that were set during its bout of sideways trading within the lower-$6,000 region.
Analysts are now widely noting that Bitcoin is well positioned to see a continuance of the upside that was catalyzed by this movement, with Big Cheds – a popular cryptocurrency analyst – categorizing this move as a “big time bull break” that is punishing shorts.
“Bitcoin daily chart – Big time bull break. Shorters getting punished,” he noted.
— Cheds (@BigCheds) April 2, 2020
While looking at the chart Cheds references, it does appear that the cryptocurrency is in the process of piercing its upper Bollinger Band on its daily chart, with that in itself potentially acting as a bullish catalyst.
Veteran Trader Targets Move to $8,400 as BTC Posts Bullish Breakout
Peter Brandt, a veteran trader and highly respected analyst, explained in a recent tweet that Bitcoin’s latest upswing has allowed it to break above what appears to be an ascending triangle, with classical charting suggesting that this breakout could lead the crypto to rally up towards $8,400 in the near-term.
“Just a matter of perspective, but best classical chart labeling likely an ascending triangle with target at 8400,” he noted in response to a tweet regarding the possibility that BTC’s low is in.
Just a matter of perspective, but best classical chart labeling likely an ascending triangle with target at 8400 pic.twitter.com/SKTrkRfj6h
— Peter Brandt (@PeterLBrandt) April 2, 2020
During Bitcoin’s uptrend in January, $7,700 was a key level that proved to be difficult to surmount, with the break above this price being the point at which some analysts noted the bull market began.
If this uptrend does lead Bitcoin to $8,400, it is possible that the crypto will soon kick off its next bull market.
Featured image from Shutterstock.