Analyst: Bitcoin could see an explosive upwards movement after tapping key “buy zone”
Bitcoin (BTC) saw a massive selloff this morning that sent the cryptocurrency reeling from the upper-$8,000 region to lows of $8,100, before finding some support that has allowed it to rebound slightly.
This intense selloff has led the benchmark crypto to dive into what one top analyst is calling a long-term “buy zone” – meaning that a strong defense of this level could lead BTC to surge significantly higher in the days and weeks ahead.
Other analysts tend to agree with this assessment, with one top trader noting that he believes there is a solid chance that the crypto’s intra-selloff lows will mark a bottom.
Bitcoin sees intense selloff as analysts eye reaction to a key support level
At the time of writing, Bitcoin is trading down over 6 percent at its current price of $8,340, which marks a massive decline from daily highs of roughly $8,800, and an even greater decline from weekly highs of $9,200.
This bear-favoring price action has widely led investors to grow increasingly bearish on the cryptocurrency, although it is imperative to keep in mind that it has been able to post a relatively strong bounce at its daily lows of just over $8,100.
Nick Patel – a prominent cryptocurrency analyst – is now noting that in order for BTC to see further near-term upside, it is imperative that bulls recapture $8,400, as a daily and weekly close above this level could signal that its recent lows are a long-term bottom.
“BTC: *IF* we close today above $8400, I would be 75% sure the bottom is in. Why? SFPs of two important swing-lows, rejection from the 360MA and anyone thinking this is a break of a H&S neckline is trapped. Target would be 9250, then new highs if support reclaimed up there.”
Will this massive “buy zone” spark an intense BTC rally?
Patel isn’t the only analyst who is expressing a cautiously bullish sentiment at the moment, as Dave the Wave – another well respected analyst with a track record of extreme accuracy – is claiming that it just entered what he describes as a “buy zone.”
“In the buy zone. Full 50% retracement of the parabolic rise. Anyone buying it yet to build a position?”
If the cryptocurrency’s bulls do catalyze a strong defense of this level, it is possible that its recent lows will mark a long-term bottom that is followed by significant upside.
Bitcoin Market Data
At the time of press 10:23 pm UTC on Mar. 10, 2020, Bitcoin is ranked #1 by market cap and the price is up 1.13% over the past 24 hours. Bitcoin has a market capitalization of $145.41 billion with a 24-hour trading volume of $42.06 billion. Learn more about Bitcoin ›
Crypto Market Summary
At the time of press 10:23 pm UTC on Mar. 10, 2020, the total crypto market is valued at at $226.76 billion with a 24-hour volume of $141.69 billion. Bitcoin dominance is currently at 64.12%. Learn more about the crypto market ›