Bitcoin’s Uptrend May Result in an Explosive Parabolic Rally Because of This Simple Factor
Bitcoin’s firm 2020 uptrend is likely far from over. After incurring some intense selling pressure earlier this week, bulls fought back and propelled the cryptocurrency all the up to highs of $9,900, which is just above where it is currently trading at.
This momentum has made it look increasingly likely that Bitcoin will soon make an attempt to break above the resistance that exists at $10,000, with a break above this level potentially catalyzing a massive parabolic movement.
Furthermore, there are also a few bourgeoning technical developments that also suggest that the crypto will soon garner significantly further momentum, including a newly formed golden cross.
Bitcoin Races to $10,000 as Analysts Watch for Rally to Turn Parabolic
At the time of writing, Bitcoin is trading up just over 1% at its current price of $9,730, which marks a slight decline from daily highs of roughly $9,900 that were set earlier this morning.
This bullishness has come about as a direct result of the cryptocurrency’s strong 2020 uptrend, which appears to be showing no signs of slowing down.
Importantly, in order for this momentum to extend further, however, bulls will have to post a decisive break of the resistance that Bitcoin is currently facing at $10,000.
One factor that could help the crypto break above this level is the bullish golden cross that it recently formed, which is a historically bullish technical formation that occurs when an asset’s short-term moving average breaks above its long-term moving average.
Mohit Sorout – a prominent cryptocurrency analyst and partner at Bitazu Capital – spoke about this golden cross, concisely noting that “dips are for buying.”
This isn’t the only bullish technical factor that is currently working in Bitcoin’s favor.
Staoshi Flipper – a well-respected cryptocurrency analyst – explained in a tweet that the breakout above BTC’s multi-month descending resistance seems to suggest that it is about to start a fresh bull run cycle.
“Different perspective – $BTC weekly. Like TeddyCleps mentioned earlier today, these ‘bear markets’ are basically like ‘bull flags’ up along #Bitcoin’s parabolic curve. When the flags breaks up, the bull run cycles continues. And as you can see, we just started a new one,” he explained.
While considering the confluence of these factors, it does appear to be highly probable that the cryptocurrency will soon see a massive extension of its 2020 rally that possibly allows it to surge back towards its previously established all-time highs.