Following an extended period of rangebound trading within the upper-$6,000 region, Bitcoin now appears to have entered yet another bout of consolidation around its current price of $6,100.
Although it remains unclear as to whether or not Bitcoin’s current market structure is bullish or bearish, there are a few fundamental factors that may suggest a price pump is imminent.
This comes as one analyst notes that there is one technical indicator that suggests Bitcoin is poised to see some near-term upside, but it must first surmount a key technical level.
Bitcoin Consolidates as Analysts Watch Key Technical Formations
At the time of writing, Bitcoin is trading down just under 2% at its current price of $6,160, which marks a slight decline from daily highs of $6,300 that were set yesterday when bulls attempted to invalidate the bearishness sparked by BTC’s plunge to lows of $6,100.
Although bulls have not been able to post any sort of sustainable rebound in the time following Bitcoin’s decline from multi-day highs of $6,900, analysts are now noting that BTC may have some underlying bullishness that ultimately allows it to climb higher.
Teddy, a prominent cryptocurrency analyst on Twitter, spoke about this bullish undercurrent in a recent tweet, explaining that BTC’s cloud indicator is currently green, suggesting that the crypto is positioned to see some near-term upside.
“BTC: Green cloud suggests that the bias of the weekly trend is still bullish. However, closing below the 200ema will postpone any bullish price action – as the cloud will turn resistance,” he explained.
#BITCOIN | $BTC
Green cloud suggests that the bias of the weekly trend is still bullish ()
However, closing below the 200ema will postpone any bullish price action – as the cloud will turn resistance
Free access to cloud?
Follow and DM @YellowBlock_io for instructions pic.twitter.com/sPomdGbFf5
— Teddy (@TeddyCleps) March 29, 2020
Bullish Signs Proliferate: BTC Incurs Rising Open Interest and Money Flow
Fundamental factors also support the notion that Bitcoin may soon see some upside, as BTC is currently incurring some decent daily money flow coinciding with its climbing open interest.
Mac – another popular trader – explained that he believes these fundamental indicators may lead BTC to pump up towards $7,000 in what could be a fleeting movement.
“Open interest up +13K $BTC after 27. March expiry. Thoughts: – Daily money flow looking good – Funding + prem still very negative. Bias: Weak dump ($5800s) into scam pump ($7000s) during this upcoming week,” he explained.
Open interest up +13K $BTC after 27. March expiry.
– Daily money flow looking good
– Funding + prem still very negative
Bias: Weak dump ($5800s) into scam pump ($7000s) during this upcoming week. pic.twitter.com/xndTMKe7f9
— Mac (@MacnBTC) March 29, 2020
If the confluence of these bullish fundamental and technical factors is able to bolster Bitcoin before its weekly close today, it is possible that it will see some further upwards momentum in the days ahead.
Featured image from Shutterstock.