Crypto bulls and cryptoanalyst all seem bullish about the fortunes of Bitcoin in the coming few months. Their optimism lies in the fact that technical indicators show bitcoin could cross the $8,800 resistance level soon.
These predictions of a short-term rally for the top crypto coin come from data provided by RIG trend lines which combines momentum studies and the Relative Strength Index (RSI).
The RSI charts the current and historical strength/weakness of an asset based on the closing price of a recent trading period. The momentum gauge recently crossed the RSI which signifies there is a definite price movement that is on the way.
Its backed by the fact that the other three times these two gauges have crossed this year Bitcoin has rallied. Data from Bloomberg indicates that the last time this happened in mid-August BTC price rose by 21 percent over the following few weeks.
The latest sign of a favorable price movement was witnessed last week when BTC lingered above a price and a trend line that flashed a positive signal.
Contrary to the expectations of many crypto enthusiasts, crypto coins have been trading lower than many had hoped this year due to a combination of factors.
Allegations of market manipulation, increased scrutiny from regulators, fears that crypto adoption may take longer than many anticipated and other factors have all conspired to affect the crypto market negatively.
The boom of marijuana stocks has also meant that investors have taken their eyes off bitcoin and other crypto coins.
Last week billionaire crypto investor and owner of Galaxy Digital LP Mike Novogratz claimed that bitcoin had hit its bottom. However, he noted that bitcoin would have to cross $8,800 and $10,000 levels before moving out of the bear market.
Do you believe bitcoin could cross the $8,800 resistance level soon? Share your thoughts in the comment section below.