Bitcoin and the aggregated crypto markets have been on the up-and-up as of late, with BTC surging from its year-to-date lows in the $3,000 region to recently established highs of well above $11,000.
This upwards momentum has drastically shifted the overall market sentiment and has led most investors to turn incredibly bullish. Although bulls are firmly in control as of now, one analyst is now pointing to a technical formation that signals Bitcoin may be ready for a pullback.
Bitcoin Surges Into $11,000 Region as Buying Pressure Sizzles
At the time of writing, Bitcoin is trading up nearly 4% at its of $11,340 and is up significantly from its daily lows of $10,800.
Yesterday, BTC once again extended its upwards momentum, running from lows of $10,800 to highs of nearly $11,500. This surge signaled that Bitcoin’s bulls are not yet ready to surrender their control over the cryptocurrency, but they may not be able to maintain their strength for too long.
It is important to note that this recent price surge has pushed Bitcoin’s price up against its weekly resistance, which may prove to be too strong to be broken above in the near-term.
The Crypto Dog, a popular cryptocurrency analyst on Twitter, spoke about this in a recent tweet, noting that although Bitcoin may soon retrace, it could provide an ideal set up for altcoins to run higher.
“$BTC tapping weekly resistance and very close to the 50% retracement from 2017 top to the 2018 bottom. A retrace here to reload would be ideal – $ALTs sure would appreciate it,” he explained.
//twitter.com/thecryptodog/status/10674689
Is BTC Destined for a Price Retrace?
Other analysts agree that Bitcoin is likely to retrace in the near-future before it continues climbing higher, as it has been forming a technical formation that historically results in a pullback.
Alex Krüger, another popular cryptocurrency analyst on Twitter, spoke about this in a recent tweet, noting that BTC is currently trading outside of its Keltner Channel, which has been historically followed by price retracements.
“Is $BTC overbought? Since 2014, $BTC has traded fully outside the Keltner Channel (2.5/20) with RSI >90 on NINE occasions. 6/9 times retraced to the open of preceding day in under 20 days (avg 10d). 1/9 times it took 79 days. 2/9 times it never retraced (May 2017),” he explained in a recent tweet.
Is overbought?
Since 2014, has traded fully outside the Keltner Channel (2.5/20) with RSI >90 on NINE occasions.
▷ 6/9 times retraced to the open of preceding day in under 20 days (avg 10d).
▷ 1/9 times it took 79 days.
▷ 2/9 times it never retraced (May 2017).
— Alex Krüger (@krugermacro)
As the week continues on and Bitcoin continues to react to its newfound position within the $11,000 region, it is highly probable that analysts and investors alike will soon gain a better understanding of where the crypto markets are heading next.
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