Bitcoin has once again been caught in the throes of massive volatility, experiencing a parabolic price surge yesterday before plunging over 20%. This price action has led many investors to quickly flip bearish on BTC, but a bullish response to its latest drop could lead it significantly higher.
Analysts are now noting that Bitcoin is still caught in a firm uptrend in spite of this recent volatility, which likely signals that it will continue climbing higher in the near-future.
Bitcoin Begins Climbing After Finding Support in $10,000 Region
At the time of writing, Bitcoin is trading up over 4% at its current price of $11,850. BTC’s latest move upwards signals that the cryptocurrency does have support in the $10,000 region, which likely signals that it will continue to extend its upwards momentum in the short-term.
Importantly, BTC is still up significantly over a one-month period, surging from lows of $7,500 to its recently established highs of just below $14,000.
So, while zooming out and looking at Bitcoin’s macro price action, it becomes increasingly clear that bulls are still in firm control, which may mean that yesterday’s drop is actually a healthy pullback that will allow the crypto to continue climbing higher.
Mayne, a popular cryptocurrency analyst on Twitter, spoke about Bitcoin’s price action in a recent tweet, explaining that $9,500 is a key level to hold, and if it does hold above this level it may surge as high as $16,000 in the near-term.
“$BTC Dumped into a HTF block and have recovered nicely. If you panic sold at $10k yesterday you are waking up salty. Patience is key if you are freaking out zoom out! We lose the grey we test $9.5k, I’m a buyer there. Otherwise once [Bitcoin] regain the 2018 y/o I expect $16k quickly,” he said.
Analyst: BTC Still in Firm Uptrend Despite Volatility
Importantly, BTC’s recovery from its recent lows signals that the crypto is still in an uptrend, and is once again gearing up for another big move that will likely send it back towards, or past, its recently established local top at $13,800.
Josh Rager, another popular crypto analyst on Twitter, spoke about this in a recent tweet, explaining that BTC is likely just “1/6 of the way to the top.”
“After a few DMs from people selling out of fear yesterday, I just want to remind you of something. Bitcoin is in an uptrend. Don’t believe me? I circled the last uptrend for you as well as the current uptrend. Probably 1/6 way to the top right now, IMO. It’s going to be okay,” Rager said.
As the week wraps up and the weekend trading session kicks off, it is highly likely that traders and analysts alike will soon garner greater insight into whether or not Bitcoin’s current uptrend will be enough to propel it past its previously established all-time-highs