Monday 15 August 2022
Home / none / Are Higher Lows A Sign of a Growing Bitcoin Bull Run?

Are Higher Lows A Sign of a Growing Bitcoin Bull Run?

Bitcoin has seen a lot of sideways price action during this week but might be able to extend its gains and regain higher grounds. The cryptocurrency continues to trade in the green and seems to be showing signs of further short-term appreciation.

Related Reading: XRP In Bearish Mode As Ripple Unlatches 1 Billion Tokens From 2 Wallets

At the time of writing, Bitcoin trades at $23,200 with 9% profits over the past week and 1% profits in the last 24 hours.

Bitcoin BTC BTCUSDT
BTC’s price trends moving sideways on the 4-hour chart. Source: BTCUSDT Tradingview

Over the last week, Bitcoin has provided more clarity about its price direction. According to a report from Arcane Research, the cryptocurrency has managed to slowly break above the critical resistance levels at $20,000, $20,700, and $23,000, this coincides with the conventional definition of an uptrend, as defined by Investopedia:

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

An uptrend describes the price movement of a financial asset when the overall direction is upward. In an uptrend, each successive peak and trough is higher than the ones found earlier in the trend. The uptrend is therefore composed of higher swing lows and higher swing highs. As long as the price is making these higher swing lows and higher swing highs, the uptrend is considered intact.

Arcane Research noted the following on BTC’s recent bullish momentum and its capacity to break previous resistance turning them into critical support:

The bitcoin price is currently at an interesting level. $23k acted as resistance in mid-June and two weeks ago and could potentially be flipped to a support level this week. If the price holds at current level, it will mark another higher low and be a bullish signal.

In that sense, Arcane Research expects Bitcoin to continue flirting with the $24,000 resistance and potentially break above it. This would signal potential continuation of the bullish trend with a potential target of $27,000 and $28,000, on lower timeframes.

Bitcoin BTC BTCUSDT AR 1 Chart 1
BTC’s price on an uptrend since July as it makes higher lows on the 4-hour chart. Source: Arcane Research

Why Bitcoin Is Likely To Sustain Its Gains

Bitcoin’s price bullish potential has been capped by macro-economic factors, the collapse of major crypto companies and ecosystems, and an increase in selling pressure from BTC miners. The latter have had to sell more of their BTC stock to meet debt obligations in the face of higher energy prices and low BTC prices, according to a report by QCP Capital.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner? Get 110 USDT Futures Bonus for FREE!

In that sense, Bitcoin will have a limited capacity to break above $28,000. The trading desk coincides with Arcane Research, BTC’s price might revisit those levels but it’s unlikely to see another massive rally like the one experienced in 2020.

Related Reading: Why You Should Be Wary Of The Bitcoin Rally With BTC At $22,000

On the contrary, BTC’s price might trade sideways as it recovers higher levels and has it records lower lows at three critical support zones: $20,700, $17,500, and $10,000. The latter seems likely to be revisited at some point in 2022, QCP Capital claims.

Read our comparison of 50 different crypto casinos. Find out who has most generous bonuses, best UX, knowledgeable customer support and best provably fair games. Original Article

About Sean Patterson

Check Also

NFT games have edge over ‘money in, no money out’ games: Polygon’s Urvit Goel

Polygon’s vice president of global business development for gaming, Urvit Goel, believes games that integrate nonfungible tokens (NFTs) have a natural edge on traditional games that don’t allow users to sell their in-game items. Goel spoke candidly with Cointelegraph in Seoul last week about Polygon’s push toward helping NFT games proliferate and why game publishers in South Korea like Neowiz and Nexon are diving headfirst into the space. One of the main arguments Goel made is that the traditional business model that NFT games are competing against may be inherently weaker. In traditional gaming, users typically buy in-game items with real money, but they cannot sell those items to get back any United States dollar value. However, with most games in the gaming finance (GameFi) space, users can buy items as nonfungible tokens and sell them when they are done playing the game. Goel referred to the traditional model as “money in, no money out,” and emphasized that gamers should be able to..

Leave a Reply

Your email address will not be published. Required fields are marked *