Bitcoin has continued trading sideways despite attempting to break up overnight, and its inability to garner any clear trend comes as multiple altcoins rally. It is important to note that BTC’s inability to break above $8,400 overnight may signal that this region is a growing level of resistance.
Analysts are now noting that one prominent technical indicator may signal that significant gains are imminent for the cryptocurrency in spite of the bearish price action it has incurred as of late. It still remains unclear as to whether or not the resistance Bitcoin has found within the upper-$8,000 region will be insurmountable.
Bitcoin Consolidates, But Mid-Term Trend May Soon Grow Clear
It is important to note that both bears and bulls have failed to give BTC any solid trend in either direction, which has led it to consolidate within the lower-$8,000 region for the past couple of weeks.
Josh Rager, a popular cryptocurrency analyst on Twitter, discussed this lack of direction in a recent tweet, explaining that it leaves him feeling “bear biased.”
“$BTC update: Currently ranging in between but with the inability to close back above $8375 area after that fake-out to $8800 and lack of volume… Leaves me feeling more bear biased. Sorry, there’s no reason for me to feel bullish anytime soon until this range breaks up,” he said while pointing to the below chart.
Technical Indicator Favors BTC’s Bulls
Josh Olszewicz, another popular cryptocurrency analyst on Twitter, recently explained that BTC’s Kijun clouds currently pointing to the possibility that Bitcoin will visit $9,300 next.
“$BTC: TK lines on 12h and 1D suggest mean reversion over lower lows. Also known as TK disequilibrium or TK c-clamp. Target = 9.3 based on 12h kumo & 1D kijun,” he said.
If Bitcoin does begin climbing higher in the near-term, it is highly likely that the upper-$8,000 region will once again prove to be a level of resistance, as it recently surged to this level before incurring a swift influx of selling pressure that sent it reeling down.