Why Bitcoin Could Continue to Push Higher: Analysts Explain
Analysts remain somewhat optimistic about Bitcoin despite last week’s strong rejection after setting a new year-to-date high.
One trader shared the chart below on August 23rd. It shows that during Bitcoin’s correction last week to the low of $11,400, it actually held three pivotal technical levels in a manner suggesting the trend remains bullish.
Chart of BTC's price action over the past year with an analysis by crypto trader Smokey (@TraderSmokey on Twitter). Chart from TradingView.com
The same commentator added in a later tweet that the way Bitcoin bounced off the aforementioned support levels is “so clean.” This may only add fuel to the belief that Bitcoin has bottomed for the time being and will soon continue moving higher.
The optimism has been echoed by another trade, who also noted that Bitcoin held pivotal support levels during last week’s move lower. He thinks that BTC’s ability to do so will allow it to soon retest $12,000. Bitcoin’s reaction at $12,000 will determine in which direction this market moves for the coming week or two.
Chart of BTC's price action over the past few weeks with an analysis by crypto trader UB (@CryptoUB on Twitter). Chart from TradingView.com
Somewhat Dependent on Legacy Markets
While BTC looks technically bullish in and of itself, there is a correlation between Bitcoin and legacy markets that should not be ignored.
As many analysts have commented in recent weeks, Bitcoin is being dragged around by the U.S. dollar, which in turn affects the values of equities and precious metals.
Should the dollar rally in value, BTC’s ongoing bull trend is likely to lose some of its momentum. In fact, Bitcoin to hold above $12,000 last week has been attributed to a recovery in the value of the U.S. dollar against foreign currencies.
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts fromTradingView.com Here's Why Analysts Remain Bullish on Bitcoin Despite Failure at $12k
Originally from Bitcoinist.com https://ift.tt/3j7jlMB
Leading global blockchain news provider. A blockchain, originally block chain, is a growing list of records, called blocks, that are linked using cryptography.