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Bitcoin price can "cool" after Rally to $ 9,700



Bitcoin (BTC) bulls have begun to push the cryptocurrency markets to the weekly end, which is scheduled to happen within minutes of publication date. The leading cryptocurrency now trades for $ 9,600 – a slight under 10% from Saturday's lowest $ 8,900. Altcoins have largely followed BTC higher and posted similar gains.

Although the surge from Saturday's low has left many analysts bullish, there is evidence to suggest that Bitcoin will take a short breath over the next couple of hours, perhaps the days. Here's why.

Related Reading: What Required the Bitcoin Price to $ 10,500? Not Chinese crypto traders, apparently

Why Bitcoin could see some withdrawal

First and foremost, a short-term bearish divergence is alleged to play out on Bitcoin's charts. According to analyst CryptoHamster the bearish discrepancy is formed as the BTC's price has gone up and the Relative Strength Index (RSI) has dropped, which means a short pull that could take the cryptocurrency below $ 9000 again.

That's not all. The trader BigCheds noted that Bitcoin has struggled to keep the 8 exponential moving average for the asset's one-hour chart, showing signs of a return to $ 9,400, and has seen a number of bearish discrepancies starting to resolve.

CME's BTC futures pushed only a huge $ 1,000 gap between Friday's closing of $ 8,700 and the weekly opening of $ 9,700.

This may not mean anything on its own hand. But Bitcoin has had a history of filling the gap, moving down or up to prices where CME's market was not trading. Just look at this chart from Richard Heart which shows that almost every single daily CME gap has been filled by the BTC in the weeks that followed a gap created.

Related reading: Latest Bitcoin Rally is "Alive and Well" as long as BTC holds over $ 8,000,000

Long Term Trend Forming Positive

Regardless of the short term, Bitcoin long term image begins to favor bulls again . [19659019] An analyst who went by "JB" pointed out that with this latest move from $ 7,700 to $ 9,700, Bitcoin's three-day chart looks extremely bullish.

He drew attention to the following reasons to support his prediction: the recent candlestick being defined as a "bullish engulfing candle", a declining trend line that peaked at $ 14,000 in June was broken, markets have seen their biggest volume day In months, the MACD is pushing a bullish divergence and the Willy indicator is now leaving oversold territory. [19659003] Related reading: China's state-controlled media explains Bitcoin to millions: Knock-On Effect

  Featured image from Shutterstock 




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