From the beginning of the year until now, Bitcoin's growth trend has done more than just putting some money in investors' pockets, as it now seems to have changed the market structure, and shows The reversal of the bear market is imminent.

This potential trend shift is taking place as BTC enters a period of regional consolidation between $ 9K and analysts are closely watching to see how Bitcoin responds to $ 9,500, when the tree Weekly candles and Monthly candles are about to close.

Bitcoin is sideway after a strong rally

At the time of writing, Bitcoin is trading at $ 9,384, marking a nearly 15% increase from the recent lows of $ 8,250.

It seems that BTC has entered a period of consolidation as the bulls are fighting for control. After breaking the recent peak at $ 9,175, the bears have not been able to close any hourly candles below this level, and it is showing the bears' potential weakness.

bitcoin-bullish-manh

Hourly BTC / USD chart | Source: TradingView

However, we still have to keep track of whether Bitcoin can close the weekly candle above $ 9,500, as a close above this level could result in a sharp rise following the recent uptrend.

Well-known analyst Big Chonis talked about the importance of a close above this level, and noted that it is a strong resistance for Bitcoin.

“A lot of reasons why closing the weekly candle above $ 9,500 will result in a strong bullish…. Currently, it is acting as a strong resistance for the bulls. ”

The technical model shows the end of the Bitcoin bear market

A weekly close above $ 9,500 can do more than just give BTC some short-term gains, as it can also confirm the end of the Bitcoin bear market.

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Trader Chonis explained that Bitcoin's monthly Heikin Ashi candle appears to confirm the change of macro trends and support the strong growth of Bitcoin.

The monthly Heikin Ashi candle certainly looks like a reversal of the recent bear trend. Although the same thing happened in early 2019 with tighter candle bodies and shorter wicks, and the next monthly candle closed above this candle, confirming a strong uptrend of Bitcoin in 2019. . “

In addition, Fundstrat Global Advisors, a New York-based market research firm, recently noted that Bitcoin's recent spike allowed it to cross the 200-day MA. Company co-founder Tom Lee wrote that whenever Bitcoin price is above the 200-day MA, the next six months Bitcoin's win rate has jumped 80%, meaning BTC has re-entered it. a new growth market ”

Conclude

Bitcoin is entering a period of consolidation in the region between $ 9K after a sharp rally. Currently, the bulls are facing a stiff resistance at $ 9,500, a weekly candle close above this level could lead to the end of Bitcoin's bear trend, and we will have a new uptrend market. .

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Price of BTC today | Source: Coinmarketcap

Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

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Bitcoin Magazine | Cryptoslate

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