Bitcoin bulls appear to be back. To quantify how impressive BTC performance has been in the last 24 hours, the coin is up 8%, pushing year-to-date gains by 90%. In the daily chart, the result is a double-bar bullish reversal pattern that reversed Dec 17 losses.
Is Bitcoin Breaking Away from Bears?
Dec 18 snap back to H1 2019 trend and BTC bulls breaking away from the grip of bears is monumental. From the chart, prices are bouncing back from November 2019 lows. From technical analysis, it was vital for bulls to flow back and shore prices that were dangling, and on a verge of a capitulation.
Evidently, bears still have the upper hand. In the daily chart, BTC is still treading within a bearish breakout pattern and this condition will be nullified only if prices edge past $7,900-$8,000 resistance mark.
Ideally, despite today’s spring, accompanying volumes that would lift BTC price above this liquidation level should be above average trading volumes (preferably) exceeding Nov 22’s volumes.
Dec 18 BTC bulls must be confirmed for Reversal
For now, it is imperative that yesterday’s stellar rejection of lower prices below $6,000 is confirmed and trading volumes increase. Of note-and this is a positive indicator and could set the tone in the immediate term, yesterday’s bull bar had above-average trading volumes. It’s a mark of bulls since prices surged following the uptick.
A short story about Bitcoin: pic.twitter.com/YT7aUnMNAm
— WhalePanda (@WhalePanda) December 18, 2019
The confirmation of yesterday’s bulls will confirm the double-bottoms that were first printed on Nov23-25. Notably, before prices broke and halved to $3,200 in 2018, prices trading at the $6,000 mark for an extended period of time before carving in, testing the nerve of bulls and pushing weak miners out of business.
An analyst took note, saying:
“I think Bitcoin is saying it doesn’t like the $6K level anymore. 2nd time in 2 months we’re bouncing back over $7K. The $6K level was the most traded level in 2018. It’s going to be interesting how the price action goes forward from here. It is really a good chance to buy.”
Therefore, while aggressive traders can jump in and accumulate, risk-averse or conservative type trades can wait for a clear breakout above $7,900-$8,000 resistance zone before loading pullbacks while aiming at $9,500.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
Dalmas is a very active cryptocurrency content creator and highly regarded technical analyst. He’s passionate about blockchain technology and the futuristic potential of cryptocurrencies and enjoys the opportunity to help educate bitcoin enthusiasts through his writing insights and coin price chart analysis. Follow him at @dalmas_ngetich