You are currently viewing Bitcoin Breaks Out! Could This Be The End Of The Mini-Bear Cycle? – Benzinga – Benzinga

Bitcoin Breaks Out! Could This Be The End Of The Mini-Bear Cycle? – Benzinga – Benzinga

Bitcoin (CRYPTO: BTC) popped over 5% higher at one point on Tuesday morning after reacting bullishly to a triple bottom pattern Benzinga called out on Monday. The cryptocurrency has been in a six-week long slump where it declined 34% between the Nov. 10 all-time high of $69,000 and Monday’s low-of-day at the $45,496 mark.
On Monday, a number of crypto analysts and traders who are popular on social media weighed in on how they believe Bitcoin’s price action may develop over the coming weeks and months. Of the four analysts the most bearish, Altcoin Sherpa, said he can see Bitcoin reaching the $55,000 before falling to new lows while the most bullish, Michaël van de Poppe, told his 535,000 Twitter followers he believes Bitcoin will remain in a bull market until third-quarter 2023 when it could see a correction.
Some bullish signs have developed on Bitcoin’s chart throughout Monday evening into Tuesday morning that indicate the, at least, temporary bottom may be in. The apex cryptocurrency isn't out of the woods yet and has a lot to prove in order to make bullish technical traders more confident.
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The Bitcoin Chart: Bitcoin printed a bullish triple bottom pattern on Dec. 17, Dec. 18 and Dec. 19 just below the $45,500 level. On Tuesday, when the crypto reacted to the pattern it shot up and broke bullishly through a falling channel formation that had been holding it down since Dec. 7.
Within the falling channel, Bitcoin was a consistent series of lower highs and lower lows but when the crypto broke up through the upper descending trendline of the channel it printed a higher high above Sunday’s high-of-day at the $48,351 mark. Eventually, Bitcoin will need to print a higher low to confirm a new uptrend is in the cards.
On Tuesday, Bitcoin’s trading volume was coming in far-above-average, which indicates a high level of bullish interest has returned. By midmorning on Monday Bitcoin's volume was already registering in at 8,502, compared to the 10-day average of 13,997.
Bitcoin is trading above the eight-day exponential moving average (EMA) but below the 21-day EMA, with the eight-day EMA trending below the 21-day, which represents bearish indecision. For bulls to feel more confident going forward, it would be ideal if Bitcoin could regain the 21-day EMA and trade above it for a period of time, which would cause the eight-day to cross back above the 21-day.
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