Bitcoin (BTC) has been on a wild ride over the past several days and weeks, as it has been able to post a meteoric rally from its recent lows of $7,300, which may signal that its recent lows are a long-term bottom that will be followed by significantly further gains.
One prominent analyst is now noting that BTC’s rally is currently strong despite its retrace from its recent highs, and is also noting that the rally will be alive and well so long as the cryptocurrency is able to hold above the lower-$8,000 region.
Bitcoin Surges Towards $10,000 as Bulls Extend Upwards Momentum
At the time of writing, Bitcoin is trading up roughly 4% at its current price of $9,500, which marks a significant climb from its recent lows of under $7,300 that were set just prior to the massive rally that came about this past Friday.
It is important to note that Bitcoin is still trading down from its recent highs of $10,600 that were set at the peak of the recent rally, and its retrace from these highs led some investors and analysts to believe that the rally was driven by overextended bulls and would be fleeting.
In spite of this, the cryptocurrency has been able to extend its upwards momentum over the past few hours, as it is fast approaching the key $10,000 price level.
Alex Krüger, a popular economist who focuses primarily on cryptocurrencies, explained in a recent tweet that he believes the continuation that Bitcoin has experienced following its massive rally may point to underlying strength.
“Following one of the largest $BTC upmoves in history (42%), larger than anything we saw during the 2017 bubble, the trade is UP. Continuation. Fact that news are *over-hyped* is about sizing/timing. If outsized fresh mainland demand were real it would call for much larger size,” he said.
Following one of the largest $BTC upmoves in history (42%), larger than anything we saw during the 2017 bubble, the trade is UP. Continuation.
Fact that news are *over-hyped* is about sizing/timing. If outsized fresh mainland demand were real it would call for much larger size.
— Alex Krüger (@krugermacro) October 27, 2019
BTC Must Hold Above $8,000 For Uptrend to Remain Strong
Krüger further noted in a later tweet that Bitcoin needs to maintain above the lower-$8,000 region in order for its current uptrend to remain strong, as any dip below this level could invalidate the rally and lead to further losses.
“To me those areas are the 200DMA, $9000, and the mid $8000s. Longs are right for as long as $8200 doesn’t trade. If price gets to $8200-$8000, expect this move to be dead and continuation lower,” he stated.
To me those areas are the 200DMA, $9000, and the mid $8000s. Longs are right for as long as $8200 doesn't trade. If price gets to $8200-$8000, expect this move to be dead and continuation lower.
— Alex Krüger (@krugermacro) October 27, 2019
The comings few days and hours may elucidate the status of this rally, as its reaction to the $10,000 region may set the tone for how it trends in the weeks and months ahead.
Featured image from Shutterstock.