Bitcoin is once again in the process of peeking above the $9,000 level. The resistance that has been established at just above this price point has proven to be rather significant, as BTC has faced multiple harsh rejections at $9,200 and $9,500.
Analysts are now noting that the cryptocurrency could be well positioned to see further upside as it begins forming a market structure that heavily favors buyers.
BTC’s current technical strength could soon allow the crypto to push past the $10,000 region.
This comes as network indicators begin to flash bull-favoring signs for the benchmark crypto, showing that it has laid the groundworks for what could prove to be a highly sustainable uptrend.
Bitcoin Shows Signs of Immense Underlying Strength as Momentum Builds
Buyers are in the process of once again attempting to push BTC above this level, with daily visits here all being followed by sharp declines back to $8,800.
It does appear that a continuance of the cryptocurrency’s strong uptrend could be just around the corner. This comes as several network indicators signal that this 130% rally from BTC’s March lows has been driven by growing fundamental strength.
Blockchain analytics platform Glassnode spoke about this undercurrent of strength in a recent post on Twitter, pointing to their Network Indicator’s (GNI) strength while explaining that the recent uptrend has been backed 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 keep in mind that data has revealed that retail buyers – and not margin traders – have been the suspects driving the cryptocurrency’s recent uptrend.
This is elucidated by the massive decline seen in BTC’s open interest that came about in tandem with the crypto’s climb higher.
Technical Outlook Brightens as Bulls Look to Set Fresh Highs
In addition to forming underlying fundamental strength, Bitcoin has also been able to form an extremely bullish market structure throughout the past few days and weeks.
A popular analyst on Twitter explained in a recent chart he offered that there are a few factors working in BTC’s favor currently.
One such factor is an emerging bullish divergence seen on its momentum indicator, which is coupled with a potential double golden cross that could soon be confirmed when its 50-day and 100-day MAs cross over its 200-day MA.
As seen on the above chart, the analyst offers an upside target at somewhere between $10,000 and $10,500.
Featured image from Unplash.