Bitcoin has been on a 5-day Bitcoin bull run which has signalled a stoppage of the coin’s bear run, at least for the near future. However, Bitcoin needs to close above $10,956 to be safely back in bull territory, a situation that seems likely thanks to high trading volumes.
Bull Run on the Horizon
On Tuesday, Bitcoin enjoyed gains as high as 2.25 per cent following a series of similar gains on previous days. The gains have helped Bitcoin comeback from the heavy losses it suffered during the final week of August when prices dropped more than $1,000. Before the drop in August, Bitcoin’s price was listed as $10,807 which is a figure seen over the past day on some of the world’s biggest crypto exchanges.
Until recently, Bitcoin was forecast to turn bearish but recent developments have made that seem less probable. If Bitcoin behaves as expected and closed at or near the $11,000 mark, a strong bullish run can be expected.
On Monday, daily charts show Bitcoin’s 6% climb breaking out from a descending triangle. This behaviour largely signals a bull run is on the way. Although the volume support didn’t look very promising, prices topped out near $10,800. Given the added volume and impressive gains, a move to $10,950 within a couple of days is likely to occur. Should the expected rise to $11,000 happen, the next price to watch will be $12,000.
Looking at hourly and weekly charts, bullish signals can also be seen. On the hourly chart, Bitcoin is breaking free from a falling channel and is rising above the trendlines for support. Should the breakout on the hourly chart surpass the $10,640 mark, the 5-day bull run would be back on track. As mentioned previously, Bitcoin joining the bulls would make $11,000 the next hurdle.
While the prospects for an incoming bull run for Bitcoin are looking strong, things could also go the other way. If prices fall behind the trendline, prices could dip below $10,300. If that happens, the bull run will have come to an end. Weekly charts indicate that a bear run at this point would push prices down past the $10,000 mark. We will have to keep an eye on the charts to see how things pan out.
There is a reason to believe that the bull run is not over, but an equally strong argument for the situation to turn bearish. Weekly charts for both 5 and 10 weeks show evidence of a likely turn into bear territory. The thing to pay attention to is the price of Bitcoin over the next day or two. Surpassing $10,600 could mean bulls are on the rise, while a dip below $10,280 would signal incoming bears.