Bitcoin’s recent selloff proved to be highly fleeting, as the cryptocurrency has now rallied up towards the upper-$7,000 region, leading it to once again confront the resistance around this price level that previously proved to be insurmountable.
Importantly, analysts do seem to believe that bulls currently have an edge over bears, as the crypto’s recent price action has established a bullish technical formation.
This formation could lead BTC to enter “full bull mode” according to one analyst, with this movement leading the crypto to climb into the $8,000 region.
Bitcoin Sees Bullish Upswing as Analysts Eye Further Upside
At the time of writing, Bitcoin is trading up just under 8% at its current price of $6,750, which marks a massive climb from daily lows of just above $6,000 that were set yesterday when bears attempted to push the crypto into the $5,000 region.
The bullish response to this attempted selloff allowed the crypto to reclaim its previous trading range between $6,600 and $6,800, and BTC is now facing some resistance as bulls try to surmount the $7,000 level.
It is important to note that Bitcoin has formed a bullish pennant, which has led CryptoBirb – a popular cryptocurrency analyst on Twitter – to tell his 75,000 followers that he thinks it is probable that BTC goes “full bull mode” next.
“If btc flips full bull mode, that’s what I think is most probable,” he said while pointing to the technical formation on the below chart.
if $btc flips full bull mode, that’s what I think is most probable pic.twitter.com/8cDgsPacvB
— CRYPTO₿IRB (@crypto_birb) April 2, 2020
While looking at the charts outlined on the above chart, it does appear that this potentially bullish movement could lead the cryptocurrency to rally all the way up towards the $8,000 region.
Here’s the Bearish Near-Term Scenario for BTC
CryptoBirb doesn’t, however, believe that Bitcoin is out of the woods yet.
He further noted in a later tweet that a breakdown below Bitcoin’s “symmetry zone” within the lower-$6,000 region could be dire, opening the gates for a movement to as low as $4,000.
“The BTC upside expansion scenario I got for yall above assumes we successfully break out and reclaim the support. Breaking down below the symmetry zone means upswing premature failure and visiting low 4000s imo,” he said.
How Bitcoin responds to the resistance it is currently facing should offer insights into which direction it will trend next, with another rejection here potentially proving to be dire.
Featured image from Shutterstock.