2020 has so far been a great year for Bitcoin (BTC), as a combination of bullish technical and fundamental factors have helped lead its price as high as $8,400 over the past ten days.
This bullishness did show some signs of slowing down yesterday, but bulls have since been able to fend off the bears and hold the cryptocurrency in the lower-$8,000 region, which previously marked a strong region of resistance for BTC.
Importantly, one prominent analyst is now noting that Bitcoin is flashing an incredibly bullish pattern that has historically preceded multiple parabolic rallies, which means that the next year could be great for BTC bulls.
Bitcoin Stable Above $8,000 as Bulls Defend Key Support Levels
At the time of writing Bitcoin is trading up over 2% at its current price of $8,075, which marks a notable climb from daily lows of $7,700 that were set overnight when bulls attempted to spark a sharp sell off.
$7,700 is an important support region for BTC because this is where it found notable resistance in late-December each time bulls attempted to spark a rally. It is also where the crypto’s EMA8 currently exists, which is a key technical trendline bulls need to defend.
In the near-term, if Bitcoin wants to see an attempt to surge to the coveted five figure price region, it is imperative that bulls push the crypto above $8,500.
These Charts Signal That This BTC Rally Could Soon Turn Parabolic
Murad Mahmudov – a prominent cryptocurrency analyst – explained in a recent tweet thread that Bitcoin’s recent lows within the $6,000 region were right around its MA200, and strong defenses of this level have historically been followed by major parabolic rallies.
While looking at different time frames, other patterns emerge that further support this notion, showing that bull’s defense of this level does signal that Bitcoin could be in the early stages of its next major parabolic rally.
Of course, there’s no telling as to whether its next parabolic cycle will match the size of those seen previously, but it is imperative that buyers continue defending the MA200 in order for this strong possibility to be validated.