Bitcoin has seen some immense bullishness throughout the past couple of days, with the benchmark cryptocurrency incurring a notable uptrend that allowed it to climb from lows of $7,700 to highs of $9,500.
This upwards momentum has marked a significant extension of that which was first incurred when BTC dipped to lows of $3,800 in mid-March, and the crypto has now erased virtually all of the losses that were incurred during this meltdown.
Analysts are now growing increasingly bullish on the cryptocurrency, explaining that its extreme strength in the face of a backdrop of global bearishness is allowing it to quickly becomes a higher version of gold.
There are, however, a few key hurdles Bitcoin must first jump over in order for this possibility to be validated.
Bitcoin’s Uptrend Highly Bullish Despite Retrace from Daily Highs; Claims Analyst
At the time of writing, Bitcoin is trading up just under 6% at its current price of $8,900, marking a massive climb from recent lows of $7,700 and only a slight retrace from daily highs of $9,500.
These highs were set last night when bulls overextended themselves, propelling the crypto before quickly losing their momentum.
Bitcoin’s ability to hold strong within the upper-$8,000 region does appear to be an overtly bullish sign, as it indicates that bulls have begun establishing some notable support within this area.
One analyst on Twitter explained why the benchmark crypto is still highly bullish even in the face of this morning’s retrace, pointing to its low open interest and only minor uptick in funding rates to justify this notion.
“Despite the morning crash, the BTC move was very bullish. Funding barely increased, aggregated OI didn’t increase by much, and Bitmex OI decreased. That speaks of the move driven by spot buyers rather than excessive leverage. The 50% retracement was welcome after +20% in 24H,” he explained.
BTC’s Strong Performance Against Global Markets Bolsters “Gold 2.0” Narrative
The “digital gold” narrative that many investors had subscribed to throughout the past few years is finally showing some signs of being validated, as Bitcoin is now trading up significantly against virtually all major assets.
Another respected analyst mused this narrative’s validation in a recent tweet, explaining that all BTC needs to do now is capture more market-share, and then it will be well on its way to becoming a “higher beta gold 2.0.”
“Even with this recent correlation, Bitcoin is still making quite a case for itself as a higher beta gold 2.0. All it needs to do is capture a bit more market-share. I think over the next 10 year period it is one of the best performing assets,” he explained.
Image Courtesy of Skew
If this trend of outperformance in spite of the global turbulence persists, BTC could quickly validate that it is largely decoupled from the traditional markets.
Featured image from Unplash.
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Author: Cole Petersen
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