3 Reasons Why Bulls Think Bitcoin's Rally to $8,800 Isn't Done
Bitcoin (BTC) bulls don’t seem to be letting up the pressure. Over the past few hours, the price of the leading cryptocurrency has rocketed higher again, just tapping $8,800 minutes ago as of the time of writing this article.
With this latest push higher, Bitcoin has rallied by 30% from the local lows around $6,800. And over the past 24 hours, BTC has rallied by 8%.
But according to a number of indicators, the rally isn’t done yet.
Bitcoin Price Explodes Higher, Analysts Expect Further Gains
Firstly, Mohit Sorout, a partner at Bitazu Capital, noted that with BTC’s latest spike higher, it has broken above two key downtrend resistances that have constrained price action for the past seven months. Not to mention, the one-day Relative Strength Index (RSI) and On-Balance Volume (OBV) indicators have broken past similar downtrends, suggesting more upside is imminent.
Secondly, Financial Survivalism, a pseudonymous cryptocurrency trader that called BTC’s ongoing price explosion when Bitcoin was in the low-$7,000s, pointed out that the Ichimoku Cloud — a sort of all-in-one indicator showing key price points and trends — is “fully bullish,” with the indicator printing three distinct signals that suggest prices will appreciate.
These three signals being a breakout from the Kumo cloud, a bullish Kumo cloud twist, and a bullish TK Cross.
And lastly, altcoins have been ripping higher, with the Satoshi Vision hardfork, for instance, gaining literally 100% in the past few days. Ethereum, too, has exploded higher, trying to redeem itself after the harrowing 2019 it had, during which it actually posted a loss.
Strong gains in altcoins should push Bitcoin higher, just like in 2017 and 2018, when the two segments of the cryptocurrency market correlated closely with each other at most times.
Key Resistance Overhead
There is key resistances overhead though. Trader BigChonis noted that BTC has just tapped the upper bound of a channel that has defined the price action for seven months now. The cryptocurrency will need to break above this level and confirm it as support if the rally will be maintained.
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