Overnight Bitcoin (BTC) was able to incur a significant amount of upwards momentum that sent it shooting past its previously established resistance level around $10,800, and any extension of this upwards momentum is highly likely to send the crypto into the $11,000 region in the very near-future.
This upwards momentum has also allowed Bitcoin to begin forming a highly bullish technical formation that could help it significantly further extend its recently established upwards momentum.
Last weekend, Bitcoin incurred some upwards momentum after dropping as low as $9,400, which sent it to highs of roughly $10,700, a level that previously proved to be a strong region of resistance that was broken above during the crypto’s surge this morning.
Although the break above this resistance level is certainly a bullish development, it is important to note that it still faces strong resistance just below $11,000, and a failure to close above this level today could send it reeling back and erasing much of its recent gains.
Luke Martin, a popular crypto analyst on Twitter, spoke about the importance of this resistance level in a recent tweet, saying:
“Highlighted the previous price action at this resistance level for $BTC. Compare the time price was able to close through the zone versus not closing above 10950: breakout vs rejection. If price closes above 10950 I expect follow through to the upside.”
Highlighted the previous price action at this resistance level for $BTC.
Compare the time price was ale to close through the zone versus not closing above 10950: breakout vs rejection.
If price closes above 10950 I expect follow through to the upside. pic.twitter.com/Zdx7Bmr1BW
— Luke Martin (@VentureCoinist) September 6, 2019
The next few days will likely prove to be critical for setting the tone for how BTC will trend throughout the second half of 2019, and one developing technical formation on Bitcoin’s daily chart may signal that further gains are imminent.
Chonis Trading, another popular crypto analyst on Twitter, explained in a recent tweet that BTC is currently forming an EMA “bull cross” on its daily chart, which could signal a long-term bullish trend shift, assuming that it is able to maintain its upwards momentum in the coming days.
“$BTC – watching this pending bull cross or rejection with EMA 12/26 on the daily #bitcoin chart… Very important price action over the next few days will determine this… lower time frames already in bull cross but daily is most meaningful to me for expansion,” Chonis noted.
$BTC – watching this pending bull cross or rejection with EMA 12/26 on the daily #bitcoin chart… Very important price action over the next few days will determine this… lower time frames already in bull cross but daily is most meaningful to me for expansion… pic.twitter.com/vLcz527yqW
As Bitcoin continues to push up against its next resistance level around $10,950, it is highly probable that its long-term trend will grow increasingly clear in the coming days and weeks.
Featured image from Shutterstock.
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