A closely tracked crypto strategist and trader says that a Bitcoin rally is now in sight as he believes momentum is swinging to the side of BTC bulls.
Pseudonymous crypto analyst Pentoshi tells his 546,900 Twitter followers that bears are exerting a lot of effort to push the price of Bitcoin down but not getting the desired result.
The crypto strategist shares an inverted chart of Bitcoin which shows extremely high trading volume with very little movement in price.
“Why is it rounding like that? Why so much volume into the highs. A lot of coins changing hands on very high effort. But are sellers being rewarded at that price? It doesn’t look like it.”
According to the strategist, the inability of bears to drive the value of Bitcoin lower despite the high selling pressure suggests that momentum is about to swing in favor of the bulls.
“Markets are like a pendulum. Momentum swings and then there’s a moment where it stops. Point is. It quite often looks like this. Even if temporary. Where one side finally gets too aggressive but it doesn’t yield results, pendulum swings the other way.”
Pentoshi says that Bitcoin can gather more bullish momentum if BTC can convert $31,000 resistance into support.
“For BTC I think we can squeeze to 34k *IF* this 31k area is flipped to support. For now, this is my bias point to trade off.”
Bitcoin is trading at $29,935 at time of writing.
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Bruce Rolff