The recent behaviour of Bitcoin price is causing traders and analysts to form strong opinions about what will happen next to the cryptocurrency, in terms of price and direction.
Since breakout that saw Bitcoin price cross above $5,000 recently, there have been small movements between this price and the $5,400 region. Bitcoin price, at the time of writing, is trading at $5,305, having made a slight pullback from a daily high of $5,360.
Analysts believe that Bitcoin price is forming new support levels. A bounce off this region will trigger another significant bull run that will push the market further up. The absence of significant selling volume and downward pressure during the pullbacks is also making analysts believe in the upside momentum.
A popular cryptocurrency analyst on Twitter by the name Flood explains in one of his posts that he is looking for an opportunity to buy more Bitcoins around the newly formed supports.
By this, he is suggesting that there could be a pullback from the higher levels where Bitcoin have been unable to break through successfully so far. This will then set it up for more buying pressure and entry from buyers, providing the upward pressure needed for the bull run.
Another indicator that is attracting a closer observation from analysts is the Bitcoin RSI technical indicator. Historically, this indicator has been consistent with identifying the bull runs for Bitcoin prices.
RSI reflects whether a market is in an overbought or oversold mode. Currently, the indicator is nearing the level around which previous bull runs began, and traders are watching closely.
Another trader who spoke on twitter by name Cow Jones indicated that the current setup sets the market up for an imminent bull run, if history is considered.
Past bull market began with RSI above the boxed range”, he said.
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