Bitcoin Just Broke Its Downtrend as Analysts Eye Extension of Momentum
- Bitcoin’s price action throughout the past 24 hours has been overwhelmingly bullish
- Following a prolonged period of range-bound trading between $10,200 and $11,200, the benchmark cryptocurrency was finally able to buck this trend and rally up to $11,400
- Its ascent has been slowing as it pushes further into the $11,000 region, but it still remains overwhelmingly strong at the moment
- Analysts are now noting that this latest move higher broke the cryptocurrency’s multi-week downtrend
- This means that the tides may now start shifting in favor of bulls, potentially allowing for significantly further near-term upside
Bitcoin and the entire crypto market have been rallying over the past day. This strength came about following a prolonged period of sideways trading and slight technical weakness.
Bulls do appear to be well-positioned to catalyze further upside, as the cryptocurrency broke above its long-held resistance between $11,000 and $11,200 that has been respected for well over a month.
Unless bulls lose their momentum and it sees a sharp retrace, it does appear that the recent bear trend is shifting back into buyers’ favor.
One analyst concurs with this assessment, noting that the downtrend has been firmly broken and that upside is imminent.
Bitcoin Stabilizes Above $11,000 as Selling Pressure Wanes
At the time of writing, Bitcoin is trading up just under 3% at its current price of $11,400. This marks a notable surge from recent lows of $10,500 that were set just a few days ago.
This push higher allowed the cryptocurrency to shatter a critical resistance level, and its price has been stable above it for quite some time now.
This is a positive sign that indicates upside could be imminent, as a daily or weekly close in the mid-$11,000 region would be incredibly bullish.
Analyst: BTC Has Re-Entered Its Bull Trend
While speaking about where the cryptocurrency may trend in the near-term, one analyst explained that Bitcoin’s RSI shows just how well-positioned it is to see further upside in the near-term.
“First convincing reclaim of the EQ of the RSI since the 12k drop. Looks pretty good… The RSI is more clean than PA itself recently. Clearly broke the downtrend, now in an uptrend,” he said while pointing to the below chart.
Image Courtesy of Byzantine General. Chart via TradingView.
How Bitcoin begins closing some of its higher time frame candles – including today’s daily candle and tomorrow’s weekly candle – should offer some insights into its near-term technical outlook.
Featured image from Unsplash. Charts from TradingView.
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