Bitcoin Validates “Coiled Power” as Analysts Set Their Sights on $8,000
- Bitcoin decisively broke through the resistance it previously faced at $7,200
- It now appears that BTC broke out of a bullish pennant that could help push it higher in the days and weeks ahead
- This pennant now has serious “coiled power” as bulls were able to spark a movement within a key timeframe.
After recapturing its position within the lower-$7,000 region, Bitcoin bulls have been able to post a massive breakout rally that sent the crypto surging to the mid-$7,000 region.
The benchmark cryptocurrency has now broken out of key level that previously proved to be incredibly important during its last bout of trading within its current price region.
There is also one emerging technical pattern that could help further boost BTC in the days ahead, as it now appears that bulls were able to confirm its “coiled power.”
At the time of writing, Bitcoin is trading up just under 5% at its current price of $7,440, up from daily lows of just under $7,000 that were set yesterday.
This movement past $7,200 came about suddenly after the crypto experienced a bout of sideways trading around this level for the past couple of days.
One analyst stated in a recent tweet that a decisive break and hold above this level could lead the cryptocurrency up to $8,000, and this morning’s intense movement seems to suggest that this will be Bitcoin’s next upside target.
“Reclaiming $7,100 and I’ll assume we’ll be testing $7,600-8,000. Might see a drop towards $6,900 as massive pivot. Holding there = aiming for longs. Losing and I’ll be targeting $6,600,” he said while pointing to the below chart.
This latest push higher has come just in time, as one trader was previously noting that bulls were running out of time to confirm a highly bullish technical pennant that it was forming. This breakout confirms this pattern and appears to open the gates for Bitcoin to “explode” higher.
The previous timeline on this move was rather short, as he noted that it had to be made by April 26th in order for it to bolster BTC
“I’ll take the risk & go long to 8k if it looks like we’re about to explode. Looking for a retrace, quick buyback, & 4th attempt at upper trendline (typically when breakouts occur). Hop in around here. Breakout required before April 26th or pennant loses its coiled power,” the analyst noted.
The confirmation of this pattern combined with the bullish reaction to $7,100 does seem to suggest that a movement to the $8,000 region is imminent.
Featured image from Unsplash.
Latest (BTC) Bitcoin News – Bitcoin Crypto News (Apr 23, 2020)
Bitcoin Investors Hodl $530M More BTC Each Day as Halving Nears — Data
Roughly 75,000 BTC is being added to long-term positions daily, according to figures tracking investor behavior.
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Bitcoin (BTC) hodlers are accumulating more coins every day than any time in over a year, as crypto investment looks increasingly attractive.
According to data from monitoring resource Glassnode on April 23, this month saw a significant increase in BTC positions.
Known as Hodler net position change, the data shows that long-term Bitcoin investors are in bear market mode, seeking to buy up coins at what they consider to be a bargain price point.
The metric originally came from Bitcoin alpha fund Adamant Capital, which equated the activity behind it roughly to insider buying and selling.
“We see that significant quantities were cashed out during bull markets of Bitcoin, and net new positions were accumulated by HODLers in bear phases,” Adamant explained in a blog post last year.
At current rates, hodlers are adding in excess of 75,000 BTC to their positions each day. The data may include exchange wallets, which can only be excluded if they are known to belong to a specific entity.
Bitcoin hodler net position change 1-year chart. Source: Glassnode/ Twitter
The impressive figures build on previous insights from Glassnode into investor behavior changes. As Cointelegraph reported, whales are also stocking up on coins, while wallet balances of 1 BTC or more are on the rise.
According to Google Trends, meanwhile, there is a keen awareness among internet users of Bitcoin’s upcoming block reward halving and the potential price upside that could result.
Search interest in “Bitcoin halving prediction.” Source: Google Trends
Earlier this week, exchange Coinbase said that it had seen a spate of Bitcoin buys equal to $1,200 — the amount of the stimulus checks currently being issued to Americans by the United States government.
Author: William Suberg
Bitcoin Rallies, Almost Hits Pre-Crash Level, Ethereum & Co Jump Too
The most popular cryptocurrency, bitcoin (BTC) rallied on Thursday sharply, almost recovering all losses suffered on Black Thursday in March.
At pixel time (14:55 UTC), BTC trades at c. USD 7,573 and is up 5% in an hour and 6% in a day. The price increased 8% in a week and 12% in a month.
BTC price chart:
Other major coins are also up around 3%-4%, except tezos (XTZ), which rallied 9% in a day and 25% in a week. Also, XTZ is the only top 10 coin that is in green against BTC today.
Meanwhile, US stocks also rose today as investors weighed the latest economic and earnings data to determine the coronavirus’s damage to global growth.
Mike McGlone, Senior Commodity Strategist at Bloomberg Intelligence, said recently that bond yields that are headed “toward zero,” combined with a volatile stock market and rising national debt levels are improving the “fundamental and technical underpinnings” for both gold and bitcoin, and that this is even more so the case now compared to before the COVID-19 outbreak.
Meanwhile, as reported, with the stablecoin market remaining at record-high levels for well over a month, more analysts are taking it as a sign that crypto traders have not given up on higher prices, but are simply waiting for an opportunity to enter bitcoin and other digital assets once again.
#Bitcoin HODLer Net Position Change has been growing daily since the end of March and is now hitting yearly highs.… https://t.co/7ZjwIUrpDH
The current macroeconomic backdrop has never been more conducive for “a non-sovereign, censorship-resistant, provably scarce digital asset,” Kevin Kelly, Co-founder of crypto research boutique Delphi Digital, said.
Also, this week, Bitcoin mining difficulty saw its biggest rise in six months and it’s estimated it’ll reach an all-time high in two weeks, right before themining reward halving.
What kind of madman shorts Bitcoin right now??☠️ # https://t.co/6ycQBgsEtc
$BTC #Bitcoin – H4
#Bitcoin has broken up to a new 6 week high and has now appreciated over 100% from its March 13th Low.
$BTC just broke above $7500 for the second time this year.
Author: By Linas Kmieliauskas