Bitcoin has been flashing signs of bourgeoning technical strength in the time following its recent dip to lows of $8,100.
From this point, the cryptocurrency has been able to incur a steady climb higher that has since allowed it to once again surmount the $9,000 region.
BTC is now fast approaching a key trend-defining moving average that could play a huge role in determining which direction the cryptocurrency trends in the months ahead.
One analyst believes that a firm break above this level could be all that is needed for BTC to rally up to fresh post-2017 highs of $14,000. If this climb occurs, it could mark the start of the cryptocurrency’s next parabolic uptrend.
Bitcoin Incurs Notable Momentum as It Approaches Upper Boundary of Channel
At the time of writing, Bitcoin is trading up just under 2% at its current price of $9,060, marking a notable climb from daily lows of just under $8,800 that were set yesterday.
The cryptocurrency’s recent price action has largely marked an extended bout of consolidation as it hovers around $9,000. Today’s push above this level does seem to mark a bullish resolution to this sideways trading, but it is imperative the it continues climbing higher in order for this to be confirmed.
Some investors had previously speculated that BTC would see a post-halving selloff due to the hype surrounding this event fading.
It doesn’t appear that this is the case, however, and the widely discussed “halving dip” may have been the movement seen a few days ago when the cryptocurrency declined from $10,000 to lows of $9,100.
One possibility that analysts are watching in the near-term is that the crypto is trading within a large descending channel and that this latest decline from $10,000 marked a rejection at the channel’s upper boundary.
“BTC – Wouldn’t it be a hoot if this was just one giant channel with Bitcoin doing a fake-out before moving back down to the midline,” one analyst questioned while pointing to the below chart.
Image Courtesy of Josh Rager
BTC Could Be Poised to Push Towards $14,000
Assuming that this channel doesn’t spark a mid-term downtrend, it is possible that Bitcoin will soon rally up to fresh post-2017 highs.
This movement could be triggered by a movement over the cryptocurrency’s 50-day moving average, which is sitting just above its current price level.
Another respected analyst spoke about this level in a recent tweet, explaining that a move above this level would also help BTC break above a descending trendline that has been respected throughout the time following BTC’s rejection at $13,800 seen last summer.
“let BTC reclaim MA50 and 14k+ is next imo,” he explained while pointing to the below chart.
Image Courtesy of CryptoBirb
Featured image from Unplash.
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Author: Cole Petersen
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