Bitcoin has once again started to show signs of recovery. In the past hour, the price of the leading cryptocurrency has exploded higher, from the daily low around $9,650 to as high as $9,040, a jump of 3%.
While this move has not yet been sustained on a weekly basis, analysts say that this recovery is an extremely positive sign for BTC, for just days ago the asset was sitting at $9,300, on the edge of a cliff that may have brought it into the $8,000s for the first time ever.
Bitcoin Could Continue Even Higher, Analysts Say
Mexbt, a popular trader, noted that the cryptocurrency, having broken out of a short-term ascending triangle in this recent move, has a measured target of around $10,220 — 3.2% above the current price.
Some have been even more optimistic than that.
Another prominent market commentator HornHairs suggested that as it stands, Bitcoin is rubbing up against the key resistance confluence of Monday’s high and the weekly open, having yet to breakthrough.
$BTC Macro Update:
Price up against Monday’s Hi & current Weekly Open here at $9.9k.
Again, as long as $9.5k weekly support & 1D bullish structure holds I expect the party to rage on to the upside. $10.2k then $11k.
Until $9.5k breaks on a 1D close, life is easier as a bull. pic.twitter.com/o5hO9xLCC9
— HornHairs 🌊 (@CryptoHornHairs) February 23, 2020
Despite the resistance BTC faces, HornHairs continued that the cryptocurrency is still on track to rally towards $11,000 in the coming weeks, citing Bitcoins ability to maintain $9,500 as if its life depended on it:
“Again, as long as $9.5k weekly support & 1D bullish structure holds I expect the party to rage on to the upside. $10.2k then $11k. Until $9.5k breaks on a 1D close, life is easier as a bull.”
Indeed, many analysts have eyed the importance of $9,500, suggesting that Bitcoin holding above it validates the bull case for the asset.
Well, Crypto Bullet, a TradingView analyst, broke down this topic in an extensive analysis published Thursday:
- The region around $9,500 has been a long-time “strong” horizontal level for Bitcoin, often acting as a reversal point for bears when approached from above and a reversal for bulls when approached from below.
- This level is the 0.5 Fibonacci Retracement level of the drop from $14,000 to $6,400. The 0.5 Fibonacci level is often significant in markets.
- $9,500 is a high-volume node per the VPVR.
- The 200 exponential moving average on the four-hour chart is currently sitting around $9,500, just below the current price of the cryptocurrency. Importantly, this level is a moving target as it is a moving average.
The insinuation here being that prices remain in an uptrend if $9,500 holds on a daily and weekly basis.
Photo by Daniel Olah on Unsplash