Bitcoin is showing immense signs of strength today, with the recovery from yesterday’s drop to $14,400 being an impressive demonstration of the current bullish control.
This rebound has significantly improved Bitcoin’s technical prospects and only confirms what many have already suspected – in this market environment, declines are there for the taking.
One analyst now notes that Bitcoin could soon enter an accumulation phase before a new upside potential is reached.
If this path comes to an end, the crypto-currency could experience a sideways trend before it can rise higher.
Bitcoin and the aggregated crypto market experience an incredibly strong price action today. This comes close to an intensive retreat, which caused some investors to expect a bear-friendly trend reversal.
This has not yet proved true, and the intensive upswing of the last hours confirms that it is a bull market and dips are there to buy.
A trader now notes that the benchmark crypto currency may soon enter a longer accumulation phase, which could last until the end of the year.
Bitcon shows signs of strength – analysts see upward trend
At the time of writing, Bitcoin is traded at a price of USD 15,440. This marks a massive increase from the crypto-currency’s recent lows of $14,400, which were set yesterday afternoon.
This sell-off was the first major retreat since the $16,000 rise earlier this week, although the intensity of the rally since reaching these lows indicates that the bulls are in full control.
Unless the bulls are confronted with further rejection at $16,000, it is very likely that new year highs are imminent.
Trader: BTC could experience an accumulation phase of several months
One trader now believes that Bitcoin is entering an accumulation phase that will allow the asset to continue to rise in 2021.
„BTC / USD monthly: It still looks so good, I’d like to see accumulation over the next 2 months into 2021, I think it’s mega bullish if support is maintained at $13,800. The bears still look pretty weak across the board at the moment, I’m just observing, no leverage is permanent“.
If Bitcoin can close its weekly candle at over $16,000, it could soon see a strong rally towards its all-time highs in the coming weeks. If it stays below that level, it could consolidate in the coming months.