Bitcoin Gearing Up for Another Parabolic Leg After Flying Past Key Resistance
Bitcoin’s prolonged bout of sideways trading at $9,600 has had a bullish resolution, as BTC buyers were able to catalyze an intense overnight rally that led the crypto all the way to $10,000, before it found some support that halted this momentum.
Analysts are now noting that this latest movement seems to one again mark a bullish shift in BTC’s market structure, as it was able to push above a key level.
The coming several hours will be imperative for understanding Bitcoin’s near-term trend, as how it closes its weekly candle should provide significant insight into where BTC and the aggregated crypto market will trend in the weeks ahead.
Bitcoin Incurs Overnight Momentum but Struggles to Break $10,000
Last night’s surge led Bitcoin has high as $10,050 before it found some intense resistance that halted the rally and led it to retrace down to the $9,800 region.
At the time of writing, Bitcoin is trading up 2% at its current price of $9,830, which marks a notable climb from daily lows of $9,600 and only a slight retrace from highs of just above $10,000.
In the near-term, analysts are noting that the cryptocurrency could once again grow to be incredibly bullish if it is able to close its weekly candle above a key long-term range that it was previously caught within.
Teddy, a prominent cryptocurrency analyst on Twitter, spoke about this in a recent tweet, noting that the crypto is currently trading above multiple key levels.
“BTC: Emotions and bias aside – price structure is bullish above the weekly range. Price is above: 1. 200 day range 2. Previous weekly high 3. Previous resistance now (testing as) support. Wicks below are to shake you out,” he explained.
BTC May Be Gearing Up for Another Parabolic Uptrend
It is important to keep in mind that yesterday’s rally also led the crypto to break above a descending channel it was previously caught within, which suggests that the crypto could soon see another parabolic movement.
Teddy also spoke about this in a recent tweet, pointing to a chart showing that striking similarities between today’s uptrend and those seen prior to other parabolic movements in previous weeks.
“1. Rising wedge 2. Break support 3. Retest previous resistance as support 4. Bounce,” he noted.
The coming several hours should provide investors with greater insight into the strength of the cryptocurrency’s uptrend, as a bullish weekly close could provide significant momentum in the week ahead.
Featured image from Shutterstock.
Bitcoin Gearing Up for Another Parabolic Leg After Flying Past Key Resistance was last modified: February 23rd, 2020 by Cole Petersen
Cole is a cryptocurrency analyst based in Los Angeles. He studied at the University of California Irvine and has covered bitcoin and the crypto markets since 2017.
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