The last ten days have been very interesting for Bitcoin enthusiasts. The fact that Bitcoin has been hovering near $12,000 in the last couple of days has left traders expecting more.
There is an optimistic feel to the market, traders expect more positive news from Bitcoin’s consolidation below a critical resistance phase. Generally, when an asset holds a stable position close to a major resistance area, the indicators usually point to a bullish run. What this indicates is that sellers have no immediate pressure to bring down the price of BTC to a significant low point.
According to analysts, the price of Bitcoin will dance above $10,000 and just below $12,000 in the coming days. Even if the price falls below $10,000, analysts believe that the bullish foundation will still hold.
Global acceptance, a thriving market structure, and the fact that the dollar is falling means Bitcoin are on the right track to grow in the next few months. But despite the encouraging signs surrounding the premium cryptocurrency, analysts express concerns about potential hiccups on the way.
Should We Expect A Bullish Progression?
Bitcoin’s long-term market structure is the reason why many technical analysts predict a bullish continuation for the digital asset. Analysts maintain that the high time frame charts of Bitcoin, show a precise breakout. The fact that the breakout happens on a high time frame chart shows we can expect a continuous rally.
“Although it is still early, the progression made will show institutions what retail Bitcoin investors have known for a while now. Bitcoin has always been an asset for the future, and right now, it is greatly under priced,” said Raoul Pal, CEO of Global Marco Investors Investor.
Since reaching its all-time high value of $20,000 in 2017, Bitcoin has danced around various price ranges in the years after. A seasonal low of $3,150 in 2018 was followed by a high of $14,000 in 2019. It’s closeness to the $12,000 mark in August 2020, means there is still room for sharp improvements before the year runs out. The gap between $12,000 and $20,000 is sizeable, but the continuation of the bullish run means the gap could close anything soon.
According to some traders, the current market structure means there is every reason to be optimistic. As one crypto trader suggests, the absorption of Bitcoin’s dips indicates that the trend of BTC is bullish. “It is currently a dip-buying moment, and any opportunity to get your hands on a higher low is welcome. As far as I know, this is a bullish chart,” the trader said.
In addition, the positive technical factors surrounding Bitcoin are reinforced by the on-chain data points.
“Holders taking advantage of the current situation. The number of bitcoin holders has reason by more than 4 million in the last year. As at last Friday, more than 20 million addresses were holding 11.5m Bitcoin for more than 12 months.”