The Bitcoin price might finally be able to surge back to the $8,000 level. According to Bloomberg, the leading cryptocurrency has entered a buying trend, which means that traders should be very careful about shorting BTC's recent price recovery.
All eyes on November's close
If buyers hurry up, Bitcoin could still avoid the biggest red candle on its monthly chart in 2019. At press time, it is changing hands at $7,754 after recording a modest two percent uptick over the last 24 hours, CoinStats data shows.
Still, BTC is down by 19.1 percent since starting November on a high note at $9,586. Cryptocurrency trader "Mr. Anderson" states that it's pivotal for bulls to hold above the 21-month exponential moving average (EMA).
$BTC Monthly— Mr. Anderson (@TrueCrypto28) November 29, 2019
Interesting dynamic here with the 24/7 Market of Bitcoin coinciding with an important Monthly closing level along w/ a Holiday that has most big players at home
But, the 21-mo ema is on the table and we can see some from history that it's a level Bulls want to hold pic.twitter.com/MiGKYWj7Yt
According to technical analyst Omkar Godbole, Bitcoin needs to close above $7,380 in order to print a bull reversal on its three-day chart. If bulls want to up the ante, the crypto king needs to breach the $8,200 in order to form the inverse head-and-shoulders formation, a bullish pattern that usually signals a market bottom.
Will this rally fade?
That said, Oanda's market analyst Craig Erlam claims that this short-term momentum will not erase a lot of bearish sentiment surrounding Bitcoin.
"There’s obviously been a lot of bearish sentiment recently and there’s nothing in the bounce that suggests a shift to me," Erlam told Bloomberg.
If that's the case, Bitcoin's recent revival will most likely end up being short-lived just like the fake China rally that historically pushed the BTC price by more than 40 percent in one single day.
Bloomberg, despite taking a lot of heat from crypto communities because of its doom-laden articles, tends to be pretty accurate with short-term price calls. On Nov. 5, the leading financial news agency posted a bearish price prediction, which turned out to be eerily spot-on.