- Although Bitcoin (BTC) has recovered in the last few days, it was rejected several times at the important USD 10,000 mark.
- Analysts agree that the outlook for BTC is bullish and predict a further upward movement, while the leading cryptocurrency could take further market shares from the altcoins.
After one of the most important events of the year for the crypto space, the Halving of Bitcoin, the leading cryptocurrency is recovering from an abrupt crash. On May 10th, BTC dropped from $9,500 to $8,100 due to a massive liquidation wave on BitMEX worth $200 million.
Just days before the crash, Bitcoin had entered a rally that brought the price briefly above the 10,000 dollar mark, a level it had last reached in mid-Feburary this year. However, the indicators now seem to point to a new rally. At the time of publication, Bitcoin is trading at $9,399, with a loss of 1.69% in the last 24 hours. In the monthly chart, however, Bitcoin shows a gain of 41.64%.
In May, Bitcoin was rejected twice at the $10,000 mark, and although BTC has found support near the current price in the $9,300 region, it has not been able to find the necessary buying pressure to break through the $10,000 mark. Nevertheless, some analysts agree on an optimistic outlook for Bitcoin.
Bitcoin forms golden cross while preparing for rally
According to analyst Josh Rager, Bitcoin is preparing a new rally and recommends traders to watch for a closure above $9,550 in the 4-hour-chart within the upcoming days. This level, according to the analyst, will be important for the BTC in the coming days. If Bitcoin fails to break this level in the short term, the cryptocurrency may have found a local top on its price, according to the analyst:
After price rallied back up near $10k, has since dropped and bounced near ATR lower extreme. Price is now creating a range, and watching for daily & weekly close above $9550 in coming days.
Analyst Mohit Sorout has found a historic pattern that Bitcoin has shown in the past and is now flashing again. According to Sorout, BTC showed the current pattern (as seen in the image below) just before it went up from $5,000 to $7,000 and from $8,000 to $14,000. If history repeats, the Bitcoin price could reach a new yearly high.
Analyst Josh Olszewicz indicated that the 50-day moving average of Bitcoin’s price has exceeded the 200-day moving average. By that, BTC has formed a golden cross. The analyst said that this indicator points to a bullish scenario for Bitcoin, but stated that it signals a bearish outlook for the “altcoins”. Historically, a golden cross precedes a bullish rally in the price of Bitcoin, and the opposite for the altcoins. Olszewicz’s analysis is supported by Blockfyre’s analyst Pentoshi, who stated:
ETH heading for levels not seen since 2016. LTC trading below 2014-2016 prices. XRP heading for levels from 2014, 2016, and 2017. The alt market looks like it could capitulate soon. Seems like the worst is yet to come but afterwards should provide huge opportunities.
If $BTC breaks out and heads towards 10.5k. Have some absolute stink bids on alts. If we see the 19' highs soon. #Alts will likely be lower than you could have ever dreamed of. Holders, or people over exposed will unfortunately likely be in more pain than at any point in 3 years pic.twitter.com/RPPBEzvmzb
— Pentoshi (@Pentosh1) May 14, 2020