Bitcoin (BTC) circled $21,000 at the Sep. 9 Wall Street open as newly-won gains endured. Meanwhile, the total cryptocurrency market capitalization has crossed back above the $1 billion mark.
After a brief consolidation, the pair set new multi-week highs of $21,254 on Bitstamp, and now faced resistance in the form of an old support level abandoned in late August.
For market commentators, however, the latest move had already proved decisive — and should favor bulls beyond short timeframes.
“This impulse up is THE confirmation,” popular Twitter trader and angel investor Revolt argued in a thread, reiterating suspicion that a market reversal was long overdue.
“Many metrics have been screaming bottom is in for weeks now. Since mid-June, I’ve been saying the bottom is most likely in and I’m going from 80% to 95% probability on that.”
Revolt highlighted various on-chain and price chart-based bull signals, among them the end of capitulation for Bitcoin miners witnessed last month.
While acknowledging that he could “definitely be wrong” on the outcome, he nonetheless put faith in a longer-term trend change now entering.
“In this case a HTF bottom that presents a (very) compelling risk/reward,” the thread concluded.
“I kept holding on to my longs from 20K, it hurt a little when underwater but now getting more comfy these will generate a serious return the coming months.”
Trader and analyst Rekt Capital, meanwhile, called for caution when assuming that Bitcoin had definitively changed tact.
Pointing to the weekly chart, he argued that traders should avoid the urge to compare the current reversal to a similar event in 2018, as at this point, no macro bottom was guaranteed.
“Looks like a USD weekly cycle top (finally) and cycle lows for stocks, gold, bitcoin. Risk on for a little while, at least,” trader, entrepreneur and investor Bob Loukas added.
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