Bitcoin Driven Higher by Accumulation Trend as Economist Forecasts Upside
Bitcoin’s recent price action has been rather lackluster compared to that seen in months and years past.
For many weeks, the cryptocurrency was caught within a $200 trading range between $9,100 and $9,300. It has since broken out of this range and is flashing some signs of strength.
The recent push higher that led it to highs of $9,600 is significant, and some analysts believe it marks the start of a fresh uptrend.
One analyst pointed out that the cryptocurrency has been seeing strong accumulation from investors over the past few days. This signals that buyers are both building strength and growing more confident in BTC’s short-term outlook.
This tempered bullishness isn’t unwarranted either.
One popular crypto-focused economist recently explained that he believes now is the time to “be greedy” when it comes to Bitcoin. He points to a plethora of factors that suggest the crypto asset is poised to see some significant near-term upside.
Bitcoin Shows Signs of Strength as Investors Accumulate
At the time of writing, Bitcoin is trading down marginally at its current price of $9,530. This is around where it has been trading at throughout the past day.
Buyers were able to push it as high as $9,600 during its latest uptrend, but the selling pressure found here proved to be rather significant.
Although the $200 movement BTC posted after trading around $9,300 may seem to be rather insignificant, it has brought the cryptocurrency one step closer to breaking out of its macro trading range between $9,000 and $10,000.
Analysts are noting that once this range breaks, Bitcoin is likely to see a massive movement that defines its trend for months to come.
One positive sign that an analyst recently pointed out is that investors have been heavily accumulating BTC throughout the past couple of days.
“It looks like there was a lot of accumulation going on the past couple of days,” he said while pointing to the chart seen below.
Image Courtesy of Byzantine General.
Economist: BTC’s Outlook is Heavily Skewed in Favor of Bulls
While speaking about Bitcoin’s present outlook against a backdrop of mixed economic conditions, one popular crypto-focused economist explained that he believes Bitcoin is entering firm bull territory.
He notes that BTC is currently attempting to break out after an extended consolidation phase.
He also notes that the macro landscape surrounding the crypto is conducive to it seeing further upside.
“Why? It’s on both of my feeds. Have been talking about the reasons for months. BTC in particular is only now trying to breakout. Breakouts after extended consolidation are for buying not selling. Both charts and current and future macro landscape favor being long,” he explained.
It’s on both of my feeds. Have been talking about the reasons for months.$BTC in particular is only now trying to breakout. Breakouts after extended consolidation are for buying not selling. Both charts and current and future macro landscape favor being long.
— Alex (@classicmacro) July 23, 2020
There are still some major hurdles that stand in Bitcoin’s way, including massive resistance in the upper-$9,000 region and its high time frame resistance at $10,500.
Featured image from Unsplash.
Pricing data from TradingView.