After the recent mini bull run breaking above $10,000, Bitcoin has been trading sideways for the past week with volatility dropping down significantly. The trading volume has also dropped down which means another intense move is coming soon.
This could be caused by uncertainty among investors or because they are accumulating Bitcoin for the next leg up. Either way, technical indicators are strongly in favor of the bulls on almost all time frames.
The daily chart is still currently in an uptrend waiting for the bulls’ next step. They are still trading above both EMAs which remain crossed bullish.
The 4-hour chart hasn’t been specifically useful for the past few days as the BTC is trading below and above both EMAs all the time.
The weekly chart is technically still in a downtrend, however, the bull strength is far higher now and they are really close to breaking the current downtrend and finally confirm the monthly higher low.
It does seem that Bitcoin bottomed at $7,300 after the huge bounce that had enough continuation to be considered a real move.
According to CryptoThies, Bitcoin trader and analyst, the recent bounce off the .618 Fibonacci Retracement was pretty decisive. He also noted that the bears should be careful about shorting this recent mini bull run.
He hasn’t been the only analyst stating that Bitcoin will surpass $10,000 soon, in fact, it seems that most market pundits agree.
This doesn’t mean BTC won’t see a small pullback first, perhaps even under $9,000 before taking off. Cooling off the RSI levels would be healthy and in fact, welcomed by the bulls. Another interesting option would be simply a re-test of $9,000.
Other non-technical indicators are also favoring Bitcoin, for instance, the fear and greed index is showing that investors are not fearful anymore and futures platforms like Bakkt and Binance are seeing a consistent trading volume increase.
