Bitcoin has seemingly been able to maintain the $6,550 mark as it’s been trading around it for the past few days. Despite the slow price action, an analyst now believes the cryptocurrency can see “renewed bullish sentiment,” if it manages to break through a specific pattern.
According to MarketWatch Nick Cawley, markets analyst at Daily FX, stated that bitcoin’s price surge this week, which saw it briefly hit the $7,200 mark before quickly coming back down to about $6,700, helped it “decisively break” a downward triangle it was on.
The trend, Cawley added, needs to be watched carefully as the cryptocurrency may soon rise back to its 200-day moving average.
If BTC can close above this triangle over the next few sessions, it will indicate renewed bullish sentiment that could push the price back to the 200-day moving average and the spike high between $7,200 and $7,300.
Bitcoin’s 200-day moving average, which is currently slightly above $7,200, and has been tested numerous times this year, without being broken. Similarly, the $6,000 support has also managed to hold the cryptocurrency’s price numerous times, catching its fall from a near $20,000 all-time high.
At press time, according to CryptoCompare data, bitcoin has risen 0.06% in the last 24-hour period to $6,558 and is near its 50-day SMA.
Bitcoin’s sudden spike, as CryptoGlobe covered, was seemingly caused by a massive USDT selloff that, analysts believe, saw most traders abandon the stablecoin to put their money on the flagship cryptocurrency. Likely due to arbitrage bots, most altcoins maintained their price correlation with BTC.
As the year comes close to its end, various bitcoin price predictions may be about to fail. Notably, bitcoin bull and Fundstrat analyst Tom Lee has been maintaining a $25,000 by year end price prediction throughout the bearish trend.
Lee, as Cryptoglobe covered, has argued bitcoin may end the year “explosively higher,” thanks to a correlation between BTC and emerging markets. He has in the past used historical evidence to argue that hodling makes sense, as per his research it takes bitcoin investors about nine days to see a full year’s gains.
He noted:
For instance, in 2017, a total of 12 days represent the full-year return of BTC.
Given the correlation most cryptocurrencies have with BTC, data shows price action has been slow in the last 24 hours. Top altcoins like XRP, EOS, and litecoin are up by less than half a percent, while altcoins like monero and ethereum classic rose 1.3% and 1.5% respectively.
In the last 24-hour period, the top performing major altcoins appear to be NEO, which gained 5.34% and is trading at $17.7, QTUM, which surged 10.7% to trade at $4, and zcash, which is up by 7.3% to $123.
