Bitcoin's recent price action has given investors little insight into the current cryptocurrency trend, as it has been stuck between $ 9,000 and $ 10,000 for an extended period of time.
There are some key price regions within this range that could massively impact the cryptocurrency's short-term trend, and one analyst believes the first level to be observed is just above BTC's current price.
He notes that a break of over $ 9,260 could be all it takes to raise the digital benchmark asset to $ 9,500. He claims that the trend favors sellers as long as BTC is below $ 9,700.
It is important to note that BTC is in the process of forming a coveted bull cross between its 8-day and 34-day EMAs. This could give it a certain dynamic in the coming days and weeks.
Bitcoin postpones over $ 9,200 as buyers catalyze slight momentum
At the time of writing, Bitcoin is trading over 1% at its current price of $ 9,240. This is a remarkable surge from the daily lows of $ 9,100 and buyers seem to be trying to generate some upward momentum.
The crypto is now pushing against resistance. An analyst notes that $ 9,260 is a key short-term level; as a firm break above it, it could catalyze a significant upward trend.
The analyst also claims that the crypto stays in the bear area as long as it trades below $ 9,700.
“BTC: If the price can close above $ 9260 here, I think it will go up to $ 9500. And then at least briefly down again. I wouldn't complain if Bitcoin shot straight up here, but the trend is still going down to over $ 9700, ”he said.
Image Courtesy of Josh Rager. Chart via TradingView.
If it navigates back to the top $ 9,000 region, further rejection will further illustrate the weakness that has plagued buyers in the past few weeks and may lead it to see further downward moves.
BTC is in the process of forming a bull cross
One factor that could help boost Bitcoin in the coming hours is the possible formation of a coveted bull cross between the 8-day moving average and the 34-day moving average.
Depending on which EMAs cross, these technical patterns differ in their meaning. Bull crosses between these moving averages are quite common since the last one was on June 22nd.
Another respected pseudonymous trader talked about it in a tweet. saying::
"Bitcoin: 4-hour update – after re-testing you are now flirting with 8/34 EMA Bull Cross. Last Cross (June 22) "
Image Courtesy of Big Cheds. Chart via TradingView.
However, this could be enough to push Bitcoin above its short-term resistance and catalyze short-term momentum.
Featured image from Shutterstock. Charts from TradingView.