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As Bitcoin spikes $2,500 in 1 day, analyst says the bear trend is technically over

As Bitcoin spikes $2,500 in 1 day, analyst says the bear trend is technically over

According to global markets analyst Alex Krüger, the bear trend of Bitcoin is technically over after its abrupt and massive rally.

Krüger said:

“Technically, BTC bear trend is over. Fundamentally, market changed in the last two months for the worse beyond just price. Miners implosion likely incoming. Impressive BAKKT volume spike (low base effect), now 2% of CME’s. Today’s +15% in my opinion clearly related to China’s news.”

The short term upside movement of bitcoin was crucial in preventing a further downside movement below key support levels at $6,800 and $6,300, which were being considered as possible targets following weeks of stagnancy.

Later in the day after Bitcoin had surged even higher, Kruger added:

Bakkt sees record-high volume but it’s not a big Bitcoin mover

Subsequent to the $2,500 movement of Bitcoin from around $7,500 to $10,000, the volume of Bakkt, a regulated bitcoin futures market operated by the parent company of the New York Stock Exchange, achieved a new record high at 1,179.

Each contract on Bakkt is equivalent to 1 BTC and as such, 1,179 indicates a daily volume of 1,179 BTC or $11.79 million.

While Bakkt is growing and it is expected to eventually evolve into a platform that accurately reflects demand from accredited and institutional investors, for now, it only accounts for a small fraction of exchanges.

In comparison, BitMEX saw more than $150 million worth of shorts liquidated as reported by CryptoSlate, 50 times larger than the entire daily volume of Bakkt.

What happens next for BTC?

With analysts like Krüger suggesting that technicals indicate a strong trend reversal for bitcoin, traders are looking at historically important resistance levels in the $8,000 to $9,000 range to confirm a breakout.

Josh Rager, a cryptocurrency trader, said that if it closes above previous resistance at $8,374, it may lead to an extended rally. He said:

Bullish candle that woke the market, was hedge short myself 1x got stopped out and still up in BTC. Late shorts got punished and literally knocked out all stops A great start but still want to see price break/close above previous resistance $8,374+.”

bitcoin price
Trader says both patterns currently forming on bitcoin chart are bullish (source: Scott Melker)

Another investor said that the current state of the cryptocurrency market can be described as a bull market and that bulls will likely continue to take control. He noted.

“If today’s BTC price action did not serve as enough of a reminder, let me say it again…this is a BULL market and bulls will take control when they please.”

Altcoins flying high

Off of the strong upside movement of Bitcoin, Ethereum climbed from $161 to $191, by more than 17 percent within two hours.

The price of XRP also spiked from $0.27 to more than $0.3, by well over 10 percent within the same time frame.

The price of Litecoin surged from $49 to $60, a gain of over 20 percent.

Analysts generally anticipate that the overnight rally of Bitcoin is likely to ignite the start to an extended rally and a potential trend reversal to the upside throughout the short to medium term.

The spike in the price of bitcoin comes at a crucial time after dropping to the lowest level since June.

Bitcoin | BTC

Updated: Nov 7 at 2:51 am PDT
$9,740.00
29.92%

Bitcoin, currently ranked #1 by market cap, is up 29.92% over the past 24 hours. BTC has a market cap of $175.45B with a 24 hour volume of $43.83B.

Chart by CryptoCompare

Bitcoin is up 29.92% over the past 24 hours.

Posted In: , Price Watch

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Joseph Young
Author

Joseph Young

Crypto Analyst @ CryptoSlate

Joseph Young is a finance and tech journalist. He has worked with leading media and news agencies in the technology and finance industries, offering exclusive content, interviews, insights and analysis of cryptocurrencies, innovative and futuristic technologies.

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