A number of analysts have been eyeing the $8,200 per Bitcoin price as an area of resistance. For them, holding above this target is an indication of further upside potential for the price.
Two of those digital currency market analysts that have identified the $8,200 price point as important are Twitter users Crypto Welson (@CryptoWelson) and Crypto Loomdart (@Loomdart). Below are the tweets in which both technical analysts outline the case for greater upside beyond the recently-identified point of resistance.
A Potential Bitcoin Comeback
Double Bottom Formed: If we can break restance at $8200, that will be very bullish, and longing Is recommenced! ? pic.twitter.com/ABp6r7KC1p
— Crypto Welson ? (@CryptoWelson) September 30, 2019
Crypto Welson recommends a long trade if Bitcoin can break and hold above $8,200. The trader and analyst identifies a recent double bottom in prices. The first low below $8,000 occurred on September 26 with the second today. Crypto Welson describes breaking above the $8,200 level as “very bullish.” With Bitcoin crossing the trader’s line and currently sitting at $8,288 at the time of writing, we may indeed be looking at further upside.
Similarly, Crypto Loomdart has identified the same level of resistance in their own charting. For the trader, Bitcoin had been trading within an ascending triangle after its harsh drop to the first bottom of Crypto Welson’s “double bottom.” However, the price broke out of this triangle to the downside at around midday on September 29. The lower line of the triangle was acting as support for the price. However, like Crypto Welson, Loomdart now considers $8,200, or the bottom line of the triangle, as resistance.
— Crypto Loomdart (@loomdart) September 30, 2019
Long-Term Analysis is Key
Of course, it’s worth pointing out to those not familiar with trading assets and reading charts that both of these traders are using analysis of low time frame’s to draw their conclusions. This means that any upswing or even downswing identified through the study of only these time frames will likely only last for a shorter period too. Such a pump following the price successfully holding above $8,200 could, therefore, be short-lived.
That’s not to say that a greater move to the upside is impossible. However, longer-term analysis is required to make such longer-term trades, similar to any comparisons made between Bitcoin and gold, as BeInCrypto has previously examined.
What do you think about the $8,200 per Bitcoin price? Do you think successfully holding above it, as we appear to be doing, is an indication of greater upside potential? We’d love to read your comments below.
Images are courtesy of Twitter, Shutterstock.