Bitcoin experienced a sharp and sudden drop earlier this morning that led the crypto as low as $6,400, and its reaction to this level has provided some much-needed validation for embattled bulls who feared that BTC would experience significantly further losses.
Much to the chagrin of bears, analysts are noting that Bitcoin may be positioned for further gains in the near-term, as its parabolic trend cycle has still remained firmly in tact despite the recent bearish price action experienced by the cryptocurrency.
Bitcoin Posts Strong Bounce After Tapping $6,400
At the time of writing, Bitcoin is trading down marginally at is current price of $6,820, which marks a massive climb from its daily lows of $6,400 that were set earlier this morning.
BTC’s strong reaction to this price signals that it is a critical support level for the cryptocurrency, and its ability to post a strong a decisive reaction to this level points to the possibility that there may be some underlying strength amongst the crypto’s bulls.
Because of this bullish reaction, analysts are noting that they believe that the crypto’s recent lows could mark a long-term bottom.
Scott Melker – also known as the Wolf of All Streets – told his nearly 60k Twitter followers in a recent tweet that he is “fully deployed” in BTC, with an average entry of $6,550.
“$BTC Trading account now fully deployed in Bitcoin, average entry $6,550. Potential bullish divergences on every time frame below weekly with oversold RSI daily and below. Potential SFP below 2 previous swing lows (blue lines),” he noted while pointing to the chart seen below.
BTC Parabolic Trend Channel Holds Strong, Which is a Good Thing for Bulls
Dave the Wave, a prominent cryptocurrency analyst on Twitter, explained in a recent tweet that Bitcoin’s logarithmic growth curve has been maintained in spite of the recent downtrend, signaling that BTC may soon see a major uptrend.
“Two years since the peak, and price is right where it should be according to the logarithmic growth curve. Gaussian Channel in the medium term – bullish,” he said while pointing to the growth channels below.
Although Bitcoin remains in somewhat precarious territory due to its current position directly at the key macro uptrend support line seen in the above chart, bull’s strong defense of this level points to the possibility that BTC will continue to hold above it, which could mean significantly further upside is imminent.