Bitcoin (BTC) has been able to incur some decent upwards momentum in the time since its faced a strong and swift rejection around $7,800, as it has since climbed up towards $7,600.
Analysts are noting that this recent price action may point to the possibility that Bitcoin is forming a bullish long-term bottom formation, which comes shortly after the cryptocurrency failed to post any decisive bullish follow through from its recent inverse head and shoulders pattern.
Bitcoin Climbs Towards Resistance Levels Within Upper-$7,000 Region
At the time of writing, Bitcoin is trading up 2% at its current price of $7,560, which marks a notable climb from its recent lows of just above $7,000 that have proven to be a long-term support level for the cryptocurrency.
Earlier this past week, Bitcoin incurred tremendous volatility that led its price to surge as high as $7,800 before it incurred a sharp and sudden retrace that sent it right back down to the lower-$7,000 region.
Following this seemingly bearish movement, Bitcoin’s bulls stepped up and began to slowly push the cryptocurrency higher, and it appears that it will once again test its resistance level at $7,800 in the near-term.
The key levels that analysts are watching in the near-term exist at $7,800 and $8,000 respectively, with Josh Rager, a popular cryptocurrency analyst on Twitter, telling his followers that he is closely watching to see how BTC responds to these levels, while also noting that the crypto is still caught in a firm downtrend on a higher time frame.
“$BTC – currently in an ascending channel and at a key resistance. Break and close here likely lead tp push up to $7800 to $8000 next. High time frame is still bearish trend – so keep all things into perspective,” he noted while referencing the chart seen below.
$BTC – currently in an ascending channel and at a key resistance
Break and close here likely lead tp push up to $7800 to $8000 next
High time frame is still bearish trend – so keep all things into perspective pic.twitter.com/ZA98qe7pPj
— Josh Rager 📈 (@Josh_Rager) December 7, 2019
Analyst: BTC May Be Forming Long-Term Bottom
Jonny Moe, another popular cryptocurrency analyst on Twitter, recently explained that Bitcoin may currently be in the process of forming a bullish long-term bottom formation.
“The $BTC inverse head & shoulders we saw last week has turned into an Adam on a potential Adam & Eve bottom. You could interpret the Eve as the beginning of a cup & handle continuation as well. Both of these are still just potential, but certainly there,” he explained while pointing to the patterns seen within the below chart.
The $BTC inverse head & shoulders we saw last week has turned into an Adam on a potential Adam & Eve bottom.
You could interpret the Eve as the beginning of a cup & handle continuation as well.
Both of these are still just potential, but certainly there. pic.twitter.com/8GzTvFT6BN
— Jonny Moe (@JonnyMoeTrades) December 7, 2019
If BTC breaks above its key near-term resistance levels, this bullish bottom pattern could be confirmed and the gates may be opened for significantly further gains.