Four reasons why
The chart below shows that BTC has broken out of the seven-month falling channel that continues to serve as the cornerstone of the bear narrative. Bitcoin has finally broken above this channel after its impressive 40 percent rally in January.
Brandt says that it is 'normal' to touch the upper boundary of the falling channel. The leading coin has retested the 18-day moving average (DMA) without triggering the three-day trailing stop rule.
Meanwhile, despite its recent pullback, BTC hasn't touched the $8,100 level, which was the Jan. 14 low.
John Bollinger agrees
John Bollinger, another trading legend who created the widely used Bollinger Bands (BBs) indicator, tweeted that $8,300 was a 'logical' level for the top cryptocurrency to find new support.
The most recent price drop has put Bitcoin closer to a middle band, signaling consolidation.
At the time of writing, BTC is trading at $8,418 after reaching an intraday low of $8,236, CoinStats data shows.
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