Bitcoin Trading Above $8000 Again Could Signify the Beginning of the Bounce

October 20, 2019 5:39 PM UTC

We have talked about Bitcoin and how the bears lacked strength in the last few technical analysis articles. The bears have been able to keep Bitcoin under $8000 for a few days, however, they lacked the momentum to see any sort of continuation.

We knew the strength wasn’t there, now, the bulls are the ones who need to prove they have what it takes. If we see Bitcoin trading above $8000 for the next few days without significant continuation, we could easily go back under $8K.

The first objective for the bulls in the daily chart is breaking above the 12-period EMA at $8143 and then set a higher low compared to $7816.  If the bulls have the strength, this can be done easily.

The 4-hour chart is now clearly in favor of the bulls and BTC is trading above both EMAs. The volume looks good and the RSI is not yet overextended. The bulls are now looking for the EMAs to cross bullish, however, they will need further momentum for that to happen.

The weekly chart hasn’t changed much, however, today is the close of the week and the bulls could eventually nullify the bear flag by trading sideways for the next few weeks.

The monthly chart continues in favor of the bulls, overall.

Technical indicators are signaling to buy on the short term and also in the very long term.

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