Bitcoin has been able to establish some stability after experiencing massive volatility earlier this week, and it is beginning to look as though the $8,000 region could potentially be a support level that allows BTC to continue climbing higher in the near-term.
Importantly, analysts are noting that BTC’s recent stability, in combination with yesterday’s CME futures expiring, could point to the possibility that a movement up towards $9,000 is imminent.
The comings days and weeks will likely elucidate whether or not Bitcoin will further extend its recently incurred downwards momentum, because as Martin notes, a break below $7,800 would invalidate any bullishness that the crypto is currently expressing.
Bitcoin Stabilizes Above $8,000 as Upper-$7,000 Region Remains Strong Support Zone
At the time of writing, Bitcoin is trading up nearly 2% at its of $8,185, which marks a notable climb from its daily lows of under $7,900 that were set yesterday.
Each time that BTC has dipped below $8,000 it has been met with significant buying pressure that has allowed its price to bounce back above $8,000, and it now appears to be caught within a consolidation range around its current prices.
As for how this period of consolidation will end, Financial Survivalism, a popular crypto analyst on Twitter, explained that he believes BTC is primed for a bounce, which could mean that it will reverse its recent downtrend and start climbing higher in the near-term.“In yesterday’s podcast I explained why I think that $BTC is ready for a bounce. That was mainly due to the RSI bull div and the ADX rollover. I mentioned that final confirmation would come from a break of the 4-hour Lucid SAR, which just occurred. Now all systems are a go,” he explained in a tweet from yesterday.
In yesterday's podcast I explained why I think that is ready for a bounce. That was mainly due to the RSI bull div and the ADX rollover. I mentioned that final confirmation would come from a break of the 4 hour Lucid SAR, which just occurred. Now all systems are a go! — Tyler Coates (@Sawcruhteez)
Will Recent CME Futures Expiration Bolster BTC Bulls?
In addition to currently expressing bullish technical signs, the CME Bitcoin futures expired yesterday, and history shows that BTC typically experiences some positive price action in the days and weeks following the expiration of these futures.
Luke Martin, another popular crypto analyst on Twitter, spoke about this in a tweet, explaining that he believes BTC could move towards $9,000 next.“Expecting upside on $BTC towards 9k. Wrong below 7800. Partially based on the chart and partially based on the data set below,” he explained while pointing to the tweet seen below that shows the major gains BTC typically incurs after the CME futures expire.
Expecting upside on towards 9k. Wrong below 7800. Partially based on the chart and partially based on the data set below ⤵️ — Luke Martin (@VentureCoinist)
Featured image from Shutterstock.
