Analyst: These External Factors are Making a Bitcoin Breakout Highly Likely
Bitcoin has been coiling up to make a big movement for several months now, and all the signs are beginning to suggest that the next bout of extreme volatility is imminent.
As for which direction this could lead the benchmark digital asset, there are a plethora of signs suggesting that the asset is poised to see some notable upside in the near-term.
While looking towards Bitcoin from a technical perspective, recent golden crosses between the crypto’s moving averages and a Hash Ribbons buy signal are both positive signs.
That being said, it could actually be external factors that provide the cryptocurrency with the momentum it needs to start a fresh uptrend.
One analyst is noting that the bullishness seen amongst precious metals, equities, and even altcoins, are all providing an ideal backdrop for Bitcoin to rally against.
The strength of these markets, coupled with a robust technical situation, could provide BTC with some serious gains in the weeks and months ahead.
Bitcoin’s Technical Outlook Grows Bright as Multiple Factors Begin Working in Bulls’ Favor
At the time of writing, Bitcoin is trading down just under 1% at its current price of $9,330.
This is around the price at which BTC has been trading at in the time following its recent surge from lows of $9,100.
The significance of this latest movement may primarily stem from the fact that this is the first time in weeks that the crypto has been able to see an upwards movement that is sustained over an extended period.
Last week, bulls made multiple attempts to surmount $9,500, but a sharp rejection followed each one.
While looking towards the underlying technical structures that could determine Bitcoin’s next trend, one analyst noted that Bitcoin’s macro outlook is bright.
He points to the “golden crosses” it has been able to form as well as a recent Hash Ribbons buy signal as factors working in bulls’ favor.
“50×100 & 50×200 Golden Cross is a powerful signal of long term appreciation. Couple that with a Hash Ribbons buy trigger, even if a pullback comes it should be short-lived.”
Image Courtesy of Mohit Sorout. Chart via TradingView.
Bullishness Amongst Most Markets to Boost BTC, Claims Analyst
Another respected data analyst explained that he believes the strength seen across other markets – including commodities, equities, and smaller crypto tokens – is providing Bitcoin with an ideal backdrop to rally against.
“Silver pumping. Gold pumping. Stocks pumping. More stimulus incoming. DeFi and mid caps have been on fire. Odds say BTC breaks up. Would be quite a disappointment if it didn’t in this environment.”
A failure to push higher despite all these positive factors would be a grave sign for the health of Bitcoin’s buyers.
Featured image from Unsplash. Charts via TradingView.