Bitcoin Remains in Firm Bull Territory as Buyers Defend Critical Support

Wednesday 9 July 2020, 9:26 AM AEST - 4 weeks ago

  • Bitcoin has remained in firm bull territory over the past several weeks, despite it showing some signs of immense weakness
  • Much of the benchmark cryptocurrencys current strength comes from its ability to hold above its SMA50
  • One analyst believes that this is the level that will determine the cryptos future in the days and weeks ahead
  • He also notes that some hidden bullish divergences are working to counter the weakness stemming from BTCs somewhat defined downtrend and its lack of momentum

Bitcoin has been caught within the throes of one of the most prolonged bouts of sideways trading it has seen in years.

Since the start of May, BTC has been establishing a trading range between $9,000 and $10,000.

Each journey outside the boundaries of this range has proven to be fleeting, and in recent weeks its volatility has cratered as it trades between $9,000 and $9,300.

This type of trend is typically followed by large movements, and some analysts hypothesize that the longer Bitcoin trades sideways, the bigger its next move will be.

As for where this movement will lead it, one analyst noted in a recent post that multiple technical factors are playing into the favor of bulls.

Bitcoin Remains Bullish in the Mid-Term Despite Signs of Overt Weakness

Over the past day, Bitcoin has been facing multiple harsh rejections at $9,300 that have stopped it from seeing any further upwards momentum.

Buyers inability to sustain the rebound that was first sparked when the crypto rallied from recent lows of $8,950 does seem to be a grim sign.

That being said, one analyst believes that the benchmark digital asset remains in an excellent mid-term position.

In a recent blog post, the pseudonymous trader explained that BTCs ongoing consolidation had come about after a notable break above a macro descending trendline.

He contends that this is positive over a longer time frame:

Long-term perspective is still favoring bullish scenario rather than bearish, due to the fact that BTC/USD broke out above long-term bearish trend and have be ...

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