Bitcoin’s firm 2020 uptrend has done more than just put some more money into the pockets of investors, as it now appears that it has fundamentally altered BTC’s market structure, signaling that a reversal of the recent bear market is imminent.
This potentially ongoing trend shift comes as BTC enters a consolidation phase within the mid-$9,000 regions, and analysts are closely watching to see how the crypto responds to $9,500 as its weekly close fast approaches.
Bitcoin stabilizes within the mid-$9,000 region as analysts watch for a close above $9,500
At the time of writing, Bitcoin is trading up just under one percent at its current price of $9,370, which marks a slight recovery from its daily lows of just under $9,300 that were set earlier today.
It does appear that BTC is entering a bout of consolidation as bulls and bears battle for control over the cryptocurrency, but the seller’s inability to post any type of decisive sell-off seems to suggest that they are plagued by underlying weakness.
In the near-term, analysts are closely watching to see if Bitcoin is able to close its weekly candle above $9,500, as a close above this level could lead to a significant continuation of its recent uptrend.
Prominent cryptocurrency analyst Big Chonis spoke about the importance of closing above this level, noting that it has become a region of resistance.
“BTC – plenty of reasons why a weekly close above $9500 would be very bullish… currently acting as resistance.”
BTC’s bear trend may be over, according to this technical pattern
A weekly close above $9,500 may do more than just provide BTC with some short-term bullishness, as it may also confirm the possibility that the cryptocurrency’s long-held bear trend is now decisively over.
Chonis also mused this possibility in a separate tweet, explaining that Bitcoin’s monthly Heikin Ashi candle appears to confirm a macro trend shift that favors bulls.
“BTC – Monthly Heikin Ashi candle definitely looking like a reversal from recent trend. Although the previous example of a tighter candle body and shorter wicks is proven to be, until a higher closing body this month confirms.”
How the cryptocurrency trends in the coming two days should provide valuable insights into how significant and far-reaching the ongoing 2020 uptrend will truly be.Posted In: Bitcoin, Analysis