The uptrend that Bitcoin has been caught within in the time following its capitulatory decline to lows of $3,800 appears to have reached a boiling point earlier this morning when the benchmark crypto printed a massive $1,000 candle.
This came about as the crypto rocketed from lows of $7,700 to highs of $8,800 – a major upside movement that appears to have thrown it into extremely bullish territory.
BTC’s latest movement invalidated a previously bearish technical formation that it was previously caught within, and has now put the crypto into firm “buy the dip” territory – according to one analyst.
Bitcoin Sees Meteoric Rally to $8,800 as Bulls Invalidate Previous Bearishness
Bitcoin has seen a massive upswing today that has allowed it to print one of the largest single day green candles seen in months.
At the time of writing, BTC is trading up well over 12% at its current price of $8,750, marking a massive climb from daily lows of under $7,700 that were set yesterday around this time.
Bull’s bid to push the benchmark cryptocurrency up towards $9,000 today has allowed it to erase virtually all of the losses that came about during the meltdown seen in mid-March.
The capitulatory decline on March 12th – a day now referred to as “Black Thursday” – led Bitcoin to decline from highs within the lower-$8,000 region all the way to $3,800.
Buyers have now firmly tipped the scales back into their favor, attempting to fully invalidate the bearish market structure that resulted from this move.
One example of this can be seen while looking towards the bearish falling wedge pattern that had been formed throughout the past several weeks.
Image Courtesy of Mohit Sorout
As seen on the above chart offered by Mohit Sorout – a founding partner at Bitazu Capital – this $1,000 green candle came just days before Bitcoin was slated to reach the apex of this formation.
BTC Enters Firm “Buy the Dip” Territory on Heels of Latest Upswing
Analysts now believe that dips are for buying, as the cryptocurrency may be well positioned to see a sustainable uptrend in the days and weeks to come.
This possibility was mused by a popular pseudonymous trader on Twitter, who explained that Bitcoin has entered bull territory ever since it broke above $8,400 earlier today.
“BTC – I wanted to do a quick update on the $8.2k – $8.4k chart to visually show how important this level is. With the break of $8.4k, we are in buy the dip territory. Doesn’t really matter if you weren’t buying the dip before here imo. Plenty of upside left,” he explained.
Image Courtesy of UB
Although sharp upwards movements like the one seen today can be followed by notable retraces, as long as bulls hold the crypto steady within the $8,000 region it does appear that further upside is imminent.
Featured image from Unsplash.