Bitcoin price is once again in the process of exceeding $9,000. The resistance, which was set at a level just above this price point, proved to be quite significant as BTC had to face many sharp drops of $9,200 and $9,500.
Good moment to continue climbing up
Analysts now note that the cryptocurrency has reached a good moment to continue to climb up as it begins to create a market structure that strongly favors buyers. BTC's current technical strength may soon allow the cryptocurrency to exceed $10,000.
This comes at a time when network indicators are beginning to show bullish signs of appreciation for the crypto benchmark, indicating that it has laid the foundation for what may turn out to be a very sustainable upward trend. At the time of writing, the price of bitcoin is just under 1% at the current price of $9,000.
It seems that the continuation of the strong upward trend in bitcoin may be very close. This is because several network indicators indicate that this 30% increase since March is driven by increasing fundamental strength.
Glassnode's platform blockchain analyst spoke about this upward trend in a recent Twitter post, pointing to their network strength indicator, while explaining that the recent upward trend was supported by strong network fundamentals.
“GNI is high, indicating BTC’s recent price action was backed by strong network fundamentals. Subindices increased steadily through April, but liquidity is trailing – leaving room for volatility. Increased growth in liquidity would build strong foundations for a bullish scenario,” they explained.
It is also important to remember that the data revealed that retail buyers - not major traders - were suspected of the recent cryptocurrency growth trend. This is due to a huge decline in BTC's interest, which occurred as the value of the cryptocurrency grew.
In addition to creating a basic strength, Bitcoin has also been able to create an extremely bullish market structure over the last few days and weeks.
A popular analyst on Twitter explained in a recent chart that there are several factors currently working in favour of BTC .
One such factor is the emerging bullish divergence seen on the dynamics indicator, which is combined with a potential double gold cross that may soon be confirmed when its 50-day and 100-day MAs cross over 200-day MA.
As can be seen in the chart above, the analyst offers a growth target of between $10,000 and $10,500.