At long last, Bitcoin (BTC) has started to show signs of life. Over the past 48 hours, the cryptocurrency has pressed higher, moving past the tight range in the $7,100s it was stuck in for days.
While some fear that this is a sign of a reversal to the bear trend that brought BTC under $7,000, analysts have affirmed their opinion that surmounting $8,000 remains in the works for Bitcoin.
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Related Reading: CME Futures Data: Institutions Still Wary Despite Bitcoin’s Bullish Signs
By Monday morning, the cryptocurrency was trading as high as $7,700, seemingly forced higher by shorts covering their positions and buyers expecting further upside. Though, all of a sudden, Bitcoin collapsed, tanking by 4% in an hour or two as the asset failed to surmount the resistance in the high-$7,000s.Bitcoin Bulls Expect Upside
Analyst Crypto Buzz that despite the drop that just took place, BTC’s outlook is looking decisively bullish, with a divergence forming between the Relative Strength Index (RSI) and the price, implying that continuation to tap $8,000 is possible in the coming days. That’s not to mention that the cryptocurrency remains above two key levels: the horizontal resistance around $7,200 and the moving average depicted in red below. //twitter.com/Crypto_Buzz_247/status/07413504Related Reading: What’s Next for the Bitcoin Blockchain? Top Developer Weighs In
Bearish Factors Remain Potent
Although the outlook for Bitcoin is starting to look better after weeks of bearish action, there remain a few headwinds that may haunt the cryptocurrency market in the coming weeks. This week, the CME monthly Bitcoin futures contracts are set to expire. In a recent Twitter thread, a market commentator going by “Joel” mentioned this, showing that there is a seeming correlation between the expiry of CME monthly futures contracts for Bitcoin and price action.His data shows that in the week ahead of all previous CME futures expiries, there was a 70% chance that Bitcoin trended lower, with the average loss coming out to 2% in seven days. This implies that BTC could easily drop again as the December 27 expiry nears; then again, though, the 2% loss is just an average, meaning that the CME expiry could spell doom for Bitcoin in the coming week.
There’s also a sentiment from analysts that the PlusToken scam selling Bitcoin and Ethereum could continue to act as a bearish factor for the coming months, for the operators still have coins to sell.
Relate Reading: XRP is Down 95% from Its 2018 Peak; What’s Next for the Embattled Crypto?
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