Bitcoin’s bulls have been able to greatly extend the momentum that they first generated when BTC tapped lows of $6,400, with this momentum reaching a fever pitch this afternoon as the crypto surges up towards the key $8,000 resistance level.
It is important to note that some analysts are expressing caution about getting too excited about today’s movement, as it is possible that this will ultimately be just another fleeting rally that is closely followed by a sharp retrace.
Bitcoin Surges Towards $8,000 as Markets are Ablaze with Excitement
At the time of writing, Bitcoin is trading up 4.5 percent at its current price of $7,750, which marks a notable climb from its recent lows of $7,400 that were set yesterday morning.
Today’s movement towards $8,000 signals, in the eyes of many investors, that the cryptocurrency’s recent lows of $6,400 could mark a long-term bottom, and many analysts have been closely watching to see if BTC is able to validate a recently formed inverse head and shoulders pattern.
Further adding to the growing bullishness amongst investors and analysts is the fact that BTC is close to posting an EMA bull cross, which is a technical signal that historically is followed by immense bullishness.
Big Cheds, a popular cryptocurrency analyst on Twitter, spoke about this in a recent tweet, pointing to a chart that shows the aforementioned EMA cross.
“BTC Bitcoin Daily chart breaking out, flirting with an upcoming 8/34 EMA bull cross (green and yellow lines),” he noted.
Is It Too Early to Get Bullish on BTC?
In spite of overt bullishness, it is important to note that Bitcoin has experienced a series of rallies over the past few weeks that have been followed by massive retraces, and it is too early to say that this time is any different.
Cantering Clark, another popular crypto analyst on Twitter, spoke about this in a tweet, while pointing to a chart that shows the multiple fleeting rallies that BTC has experienced over the past couple of weeks.
“Try not to lose your minds yet people. The market is meant to get you extremely bullish when it is expensive, and extremely bearish when it is cheap. Same idea works in 1460$ ranges. Anyone who buys up here for any reason other than long term holdings is COO COO. BTC,” he explained.
Whether or not the ongoing rally is truly a sign that further bullishness is right around the corner remains to be seen, but the coming few hours and days will likely prove to be highly elucidating for investors.
Bitcoin, currently ranked #1 by market cap, is up 5.56% over the past 24 hours. BTC has a market cap of $143.8B with a 24 hour volume of $25.01B.
Chart by CryptoCompare
Posted In: Bitcoin, Analysis, Price Watch