As Bitcoin inches back to $7,000, analysts eye prime long opportunities

As Bitcoin inches back to $7,000, analysts eye prime long opportunities

Bitcoin (BTC) has had a volatile past couple of days, with bears orchestrating a violent sell-off that sent it as low as $6,400 before buyers stepped up and catalyzed a major relief rally that sent the crypto back up to the $7,000 region.

This rally has lost its momentum today, as BTC is currently inching back towards its key support level at $7,000. In spite of this, analysts are noting that the current price levels could be prime opportunities to enter fresh long positions, as the crypto could be poised for significantly further near-term upside.

Bitcoin Dips Towards $7,000, But Traders Are Looking to Go Long 

At the time of writing, Bitcoin is trading down just over 1 percent at its current price of $7,170, which marks a notable retrace from its recent highs of $7,600 that was set at the peak of yesterday’s rally.

This rally, which at its height allowed Bitcoin to post over $1,000 worth of gains from its recent lows, is proving to be somewhat weak due to the lack of sustained momentum, but this hasn’t fazed bullish traders and analysts.

Big Chonis, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that he would much rather be looking to enter fresh long positions at BTC’s current price levels than to short it, signaling that he anticipates it to see further upside in the near-term.

“Bitcoin – looking for a long rather than a short rt now… #bitcoin,” he noted while pointing to the candle chart seen below.

Bitcoin BTC
Image Courtesy of BigChonis

BTC’s Technical Strength is Shaping Up

The Cryptomist, another popular cryptocurrency analyst on Twitter, corroborated Big Chonis’ bullish assessment of Bitcoin in a tweet, explaining that there are currently multiple technical indicators that point to the possibility that significantly further gains are imminent.

“$BTC: 1D Heikin Ashi suggest trend change (uptrend) – 4hr Ichi cloud, close to a buy signal as potential crossover under cloud in play – Could this 1hr Ascending triangle that should break within 6 hours wake up the bulls? Tick Tock,” she said.

How Bitcoin responds to a potential test of its support at $7,000 in the near-term could provide significant insight into whether or not it ends 2019 on a bullish note, or if the recent downtrend extends into 2020.

Bitcoin | BTC

Updated: Dec 20 at 3:09 am UTC

Bitcoin, currently ranked #1 by market cap, is down 0.63% over the past 24 hours. BTC has a market cap of $130.24B with a 24 hour volume of $24.48B.

Chart by CryptoCompare

Bitcoin is down 0.63% over the past 24 hours.

Posted In: , Analysis, Price Watch

The above advertisement is an referral link.

Invest with AMFEIX

Like what you see? Subscribe to CryptoSlate

Get our daily newsletter containing the top blockchain stories and crypto analysis straight to your inbox.

Sign up to stay informed
Cole Petersen

Cole Petersen

Journalist @ CryptoSlate

Cole is a freelance journalist and university student studying philosophy. He focuses primarily on covering cryptocurrency and blockchain-related news. He owns a non-life-changing sum of Bitcoin and enjoys day trading.

View author profile

Commitment to Transparency: The author of this article is invested and/or has an interest in one or more assets discussed in this post. CryptoSlate does not endorse any project or asset that may be mentioned or linked to in this article. Please take that into consideration when evaluating the content within this article.

Disclaimer: Our writers' opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.