As Bitcoin begins to consolidate around $ 10,000 in the region, the cryptocurrency appears to be preparing to make another massive surge and possibly hit new annual highs.
This strong dynamic has strengthened the benchmark cryptocurrency on several fronts.
From a technical point of view, BTC has now overcome several important trend lines that previously hindered its price development. The crypto has also seen a massive increase in spot volume, now peaking, signaling that a major move is imminent.
An elusive indicator that flashed just before the massive parabolic bull run at the end of 2017 is also flashing – a sign that buyers are about to drive a massive move.
Bitcoin will push over $ 10,000 as the underlying strength grows
At the time of writing, Bitcoin is trading just over 3% at its current price of $ 9,970.
This is a remarkable surge from the recent lows of $ 9,000 set a few days ago just before the massive surge in cryptocurrency at $ 10,000 yesterday morning.
It now appears that crypto is entering a short-term consolidation phase in which buyers are trying to get more support.
The lack of rejection at Bitcoin’s recent highs is certainly a positive sign for buyers, as it becomes clear that this rally can be far more sustainable than in previous months.
A possible factor that speaks for the bulls is the falling open interest in trading platforms like BitMEX, which signals that private investors have spurred this movement.
Bitcoin is now flashing signs that it’s about to put another leg up.
A popular dealer talked about these signs in one last tweetThis explains that trading volume is peaking above an important trend line and that BTC has just successfully reversed a previous resistance level to support it.
“The price is starting to break out, the volume is just peaking above the trend line. The old resistor was successfully tested again and has now been confirmed. Send it, ”he said, pointing to the table below.
Extremely bullish technical indicator flashes
In parallel with these positive technical developments, an elusive indicator flashed, which has only flashed twice in the past 4+ years.
This indicator appeared in the months before the massive parabolic uptrend in late 2017 and again just before the BTC rally in summer 2019.
Another pseudonymous crypto trader pointed to the diagram above taking note that he believes the crypto could “explode” up to $ 20,000 in the short term.
“The BTC chart appears to be skyrocketing to $ 20,000.”
The emergence of this indicator closely coincides with Bitcoin’s decisive break above a descending trend line that peaked at $ 13,800 in late June 2019 after its rally.
Featured image from Unplash.