Last week, volatility finally picked up for the Bitcoin price after a multi-week lull. While many traders embraced this tumultuous price action, it seems that the cryptocurrency market is settling once again, with BTC finding support at $8,000.
Over the past three days, the asset has been relatively still in the low-$8,000s, having not lost or gained more than 5% in any 24-hour period.
While some believe that this lack of price action is a precursor to yet another bout of consolidation, analysts are starting to expect for Bitcoin to mount on a recovery. One that will bring the cryptocurrency up by at least 10%.
Chances for Bitcoin Recovery Building
According to Josh Rager, as long as Bitcoin continues to “range between heavy support near $8,000”, the more likely it is that the cryptocurrency will see a nearly 10% bounce to $8,700.
The idea here is that as $8,000 has acted as an important historical level, it will here too. A close below it would be bearish; consistent closes above it implies that bulls have some semblance of control.
$BTC continuing to range between heavy support near $8k and can expect a bounce to $8700+ if this continues to hold
Any bounce I'll likely short but will continue to keep an eye on indicators and price action pic.twitter.com/9vYarErafw
Rager isn’t the only one expecting for Bitcoin to continue to the upside should the $8,000 support hold.
Luke Martin, a well-known crypto analyst that was recently featured on CNN’s “Crypto Craze” segment, explained that the recent close of the monthly CME futures contract may mean that gains for BTC are about the materialize:
“Expecting upside on $BTC towards 9k. Wrong below 7800. Partially based on the chart and partially based on the data set below,” he explained as he pointed to a tweet that shows the historical gains BTC incurs after the expiry of a CME future.
Expecting upside on $BTC towards 9k. Wrong below 7800.
Partially based on the chart and partially based on the data set below https://t.co/HmCQ718L1A
— Luke Martin (@VentureCoinist) September 27, 2019
And, trader Financial Survivalism has also targeted a move to the low-$9,000s, looking to a bullish divergence on the RSI, an ADX rollover, and a SAR bullish breakthrough.
Featured Image from Shutterstock