After breaching the $20,000 mark, Bitcoin has managed to hold onto it throughout the weekend. Up by nearly 6% in the past seven days, the popular cryptocurrency is trading at $20,526. However, it’s down by 1.20% in the last 24 hours.
Bitcoin is likely to register an uptrend after being caught in a rolling slumber for much of 2022. Il Capo of Crypto, a popular pseudonymous trader, and analyst, believes a change of direction was ultimately due for Bitcoin and altcoins alike. He said the two popular cryptocurrencies, Bitcoin and Ethereum, will make a mark before the year ends, and some altcoins could pump more. The analyst tweeted that it’s not entering any new long positions and just trailing his stops in profits (altcoins).
However, crypto trader Mark Cullen voices caution over the short-term market strength. He outlined that Bitcoin spent a bit too long under $21,000, while altcoins in particular Ethereum have run. Breaking the golden zone, Cullen would consider a quick push higher first. If Bitcoin loses out on the support at $20,400, crypto would see a fresh plunge. Analysts say a lower low below the $20,000 psychological level will reinforce the bearish outlook.
Moreover, the higher highs produced on October 26 and 29 seem to diverge from the Relative Strength Index’s (RSI) lower highs. This is known as bearish divergence and shows the asset’s value is rising despite the declining momentum. It will eventually lead to a reversal for the underlying asset. Analysts outlined that a move lower will provide a rebalance to the inefficiency that the Bitcoin price created on its way up. And if the bullish momentum is enough, it’s likely to touch $22,106.