The Bitcoin bulls have proved themselves after several continual moves following the initial bounce almost a week ago. Bitcoin is now trading at around $7,600 and the bulls are still in control in the short term. The price of Bitcoin is currently above the 12-period EMA and the bulls are only facing one more line of resistance at $7,985 where the 26-period EMA lies at.
Beyond that line of resistance, the bulls are facing no opposition until $9,150 which means that if they are able to break $8,000, this bounce could extend all the way up to $9K and above.
Growing Buying Pressure for Bitcoin
What started out as a small beacon of light for the bulls has turned into a significant bounce with a lot of continuation. Bears are starting to feel the pressure as Bitcoin continues to post more gains every single day.
According to Bloomberg, technical indicators are showing that Bitcoin is ready to retake $8,000 again. The news and business network states that Bitcoin has entered a buying trend and that shorters should be extra careful as explosive moves to the upside are a real possibility.
William Suberg seems to agree as his research designates that Bitcoin is statistically likely to gain around 4% in price in the upcoming weeks. According to statistics collated by trader, and analyst Luke Martin, Bitcoin seems to face selling pressure before futures settlement and positive returns after.
Although this isn’t always the case, it does seem to be the general trend for Bitcoin when futures expire.
Bakkt Continues to experience a steady increase in trading volume despite a fall in the overall crypto market trading volume.
Bitcoin 4-Hour Chart as a Clear Indicator?
The shorter timeframe charts are usually quite inconclusive for cryptocurrencies in general, however, the 4-hour chart is currently really clear and shows Bitcoin in a strong and healthy uptrend. The bulls are currently experiencing a very healthy consolidation and waiting to bounce off from the 12-period EMA.
They are facing no resistance until $8,222 aside from $8,000 psychological level and 26-period EMA on the daily chart. The RSI is not overextended as the bulls have been able to cool it off thanks to healthy and short periods of consolidation.
The volume has been in favor of the bulls throughout the entire bounce. Every single leg up had a lot of bullish volume behind it and consolidation periods are seeing a significant decrease in volume, this is a textbook-perfect healthy uptrend.