Bitcoin is showing immense signs of strength today, with the rebound from yesterday’s drop to $ 14,400 being an impressive demonstration of the current control by the bulls.
This boom has significantly improved Bitcoin’s technical outlook and only confirms once again what many have already suspected – in this market environment, declines are there for purchases.
An analyst is now determining that Bitcoin could soon initiate an accumulation phase before there is new upside potential
If this trail comes to an end, the cryptocurrency could see a sideways trend before it can move higher.
Bitcoin and the aggregated crypto market are experiencing incredibly strong price action today. This comes close to an intense pullback that has led some investors to expect a bear-friendly turnaround.
This has not yet proven to be the case and the intense rally of the past few hours confirms that this is a bull market and that there are dips to buy.
A trader is now realizing that the benchmark cryptocurrency may soon enter a longer accumulation phase that could drag on until the end of the year.
Bitcon shows signs of strength – analysts see upward trend
At the time of writing, Bitcoin is trading at $ 15,440. This marks a massive surge from the cryptocurrency’s recent lows of $ 14,400 set yesterday afternoon.
That sell-off marked the first major retreat since rising to $ 16,000 earlier this week, although the intensity of the rebound since hitting those lows suggests the bulls are in full control.
Unless the bulls face another rejection at $ 16,000, new annual highs are very likely.
Trader: BTC could experience an accumulation phase lasting several months
One trader now believes that Bitcoin is entering an accumulation phase that will allow the asset to continue rising in 2021.
„BTC / USD Monthly: Still looking so good I would like to see accumulation here over the next 2 months into 2021, I think it is mega bullish if the support is held at $ 13,800. The bears are still looking pretty weak across the board at the moment, I’m just observing that no leverage is permanent. “
If Bitcoin can close its weekly candle above $ 16,000, it could soon see a strong rally towards its all-time highs in the coming weeks. If it stays below this level, it could consolidate over the next few months.