For the fourth or fifth day in a row, bulls have taken control of the Bitcoin (BTC) market, pushing the leading cryptocurrency as high as $7,660 just minutes ago, marking a multi-week high. As of the time of writing this, BTC is trading up 3% on the day, actually underperforming Ethereum’s 4% and XRP’s jaw-dropping 12%.
Despite this, analysts are becoming certain that a strong continuation to the upside over the coming days is likely. Here’s more on that.
Related Reading: Bitcoin Poised to Collapse Under $5,000? Market Cycle Fractal Suggests So
Bitcoin Ready to Surge Higher
Josh Olszewicz, an analyst at Brave New Coin, recently noted that an inverse head and shoulders chart pattern — a bullish pattern that is likely to mark a strong bottom for BTC — is playing out for Bitcoin.
He remarked in a TradingView post outlining his trading idea that should BTC hit $7,525 (and it has), a move to the $8,100 to $8,700 range — a 7% and 14% rally, respectively — is likely to play out. As to why the rally will stop there, he cited a confluence of a few key resistances: the 200-day exponential moving average, the daily Ichimoku Cloud, a yearly pivot point, and the weekly 20 moving average.
Also, a textbook Wyckoff Reaccumulation pattern suggests that BTC will break higher and higher in the coming days, in an upward move that will bring the asset back to the high-$7,000s.
Related Reading: This Scary Fractal Suggests Bitcoin Price Is On Its Way to $3,000
Longer-Term Outlook Positive Too
On a longer-term basis, Bitcoin appears to be getting bullish too.
Per previous reports from this very outlet, trader CryptoHamster recently noted that Bitcoin’s on-balance volume reading — an indicator which “uses volume flow to predict changes in stock price” — is printing a clear falling wedge pattern, a chart pattern marked by falling prices (or in this case, a reading) and a tightening range.
In this case, the falling wedge seems bullish, with the Bitcoin-related on-balance volume reading rallying, implying imminent continuation to the upside.
On-balance volume descending wedge is getting tighter.#bitcoin $BTC $BTCUSD pic.twitter.com/XT5EJDoQIW
— CryptoHamster (@CryptoHamsterIO) January 4, 2020
Not to mention, according to Willy Woo, partner at cryptocurrency fund Adaptive Capital and a noted on-chain analyst, his indicators which track investor activity — correlated closely with market cycles — are showing clear signs that Bitcoin is decisively not in a bear market.
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