The latest Bitcoin news show that most of the losses for the dominant coin this year are now wiped out as BTC managed to finally improve its price compared to the one it started the year with ($7,200). Now, we can spot two technical signs that show why a potential BTC rally to $8,000 is very likely for the dominant coin.
As we can see from one analyst named Scott Melker in the news, the price of BTC has seen a strong rebound from $6,800 to $7,600 within a four day span, recording a 12% increase. Two technical factors are very likely to push BTC to $8,000 in the near term as many traders anticipate a strong weekly close.
In the upcoming days, it is expected for the 200-day simple moving average (SMA) found at just over $8,000 and an ascending triangle forming to push the price of Bitcoin to the $7,900 and $8,000 range. If this occurs, the coming altcoin news are expected to show a lot of increases as well for alternative cryptocurrencies.
Looks pretty good. pic.twitter.com/uJHKAJ302x
— The Wolf Of All Streets (@scottmelker) April 26, 2020
The 200-day SMA is next on the table, also used frequently by stock traders as a way to determine long-term market trends in an asset or an index. If the price of an asset, in this case of Bitcoin, remains above the 200-day SMA, it is considered to be in a bullish trend. However, if it consolidates below the level, it would signal that the asset is in a bear market.
Ever since the “Black Thursday” which occurred on March 12 when BTC dropped to as low as $3,600, the coin remained below the 200-day SMA resistance level. This suggests that technically, Bitcoin is still in a bearish trend and a rejection from $8,000 would confirm that.
8k line in the sand drawn by the coinbase gods $btc pic.twitter.com/9EGIYRIYYl
— red (@redxbt) April 26, 2020
The two technical signs show that the 4-hour chart of Bitcoin is forming an ascending triangle. On major spot exchanges like Coinbase, there is also a cluster of large sell orders at ,000.
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The tendency of BTC to move towards a direction of large orders led by traders seeking liquidity strengthens the argument for a potential move up for BTC in the following week.
Historically, the Bitcoin price moving slowly upwards paired with a rise in daily volumes has led to a decent recovery for the altcoin market, too.
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