Despite facing downwards pressure that put Bitcoin’s upwards momentum in jeopardy last week, the cryptocurrency has been able to continue climbing higher and is now nearing its price levels that were set just prior to the Tether-Bitfinex imbroglio that sent BTC reeling down to the lower-$5,000 region.
This positive price action has led an incredibly bullish sentiment to abound within the crypto community, and many analysts now believe that Bitcoin will incur further gains in the near future as it continues climbing higher.
Bitcoin (BTC) Surges to $5,500
At the time of writing, Bitcoin is trading up over 2% at its current price of just under $5,500, up significantly from its daily lows of $5,370.
Bitcoin has rebounded from its one-week lows of roughly $5,150 that were set last Thursday when the New York Attorney General’s accusation that Bitfinex and Tether were defrauding investors spread throughout the crypto community, instantly leading to a sense of fear amongst investors.
Despite this, the markets quickly shook off the news and have been tepidly climbing higher ever since the lower $5,000 region was hit, which is viewed by many analysts as being a sign of growing fundamental strength in the markets.
Luke Martin, a popular cryptocurrency analyst on Twitter, shared his thoughts on Bitcoin current price action in a recent tweet, explaining that he expects BTC to face an upwards battle until it breaks above its recent highs at $5,600.
“$BTC slight move up since the resistance/support flip. Meh. It’s hard to be too excited about more upside until price can get above the most recent high at 5600. That’s when I would be far more bullish. Until then I’m a little closer to neutral,” Martin explained.
Bitcoin set its recent highs just prior to when news broke regarding the Tether imbroglio, when it hit highs of roughly $5,650.
BTC Continues Forming Similar Patterns to Those Seen in Previous Years
Another interesting trend that has arisen as a result of Bitcoin’s recent upwards surge has been that many analysts are now seeing striking similarities between the crypto’s current price action and that seen in previous years prior to massive bull runs.
FlibFlib, a popular crypto analyst on Twitter, discussed one of these similarities in a recent tweet, explaining that there are parallels between Bitcoin’s 2017 and 2019 price action.
“There is some similarity between 2017 and 2019 in the way in which we bottomed from $5k->3k 2017 and broke back to $5k. It took a lot longer this time in a bear market. Overlay & Extrapolate that trend and Dec 2019 could be fruity if we can get over the Tether risk,” he explained.
As the weekend trading session looms on the horizon and Bitcoin continues climbing slightly higher, it will likely become increasingly clear as to whether or not BTC is ready to break out of the $5,000 region, or if further consolidation is needed.