Bitcoin Price Poised to Press $8,000, Analysts Assert After 4% Drop

At long last, Bitcoin (BTC) has started to show signs of life. Over the past 48 hours, the cryptocurrency has pressed higher, moving past the tight range in the $7,100s it was stuck in for days.Related Reading: CME Futures Data: Institutions Still Wary Despite Bitcoin’s Bullish SignsBy Monday morning, the cryptocurrency was trading as high as $7,700, seemingly forced higher by shorts covering their positions and buyers expecting further upside. Though, all of a sudden, Bitcoin collapsed, tanking by 4% in an hour or two as the asset failed to surmount the resistance in the high-$7,000s.While some fear that this is a sign of a reversal to the bear trend that brought BTC under $7,000, analysts have affirmed their opinion that surmounting $8,000 remains in the works for Bitcoin.Bitcoin Bulls Expect UpsideAnalyst Crypto Buzz recently noted that despite the drop that just took place, BTC’s outlook is looking decisively bullish, with a divergence forming between the Relative Strength Index (RSI) and the price, implying that continuation to tap $8,000 is possible in the coming days. That’s not to mention that the cryptocurrency remains above two key levels: the horizontal resistance around $7,200 and the moving average depicted in red below.$BTCUSDThank me later!!! pic.twitter.com/WEQwX3ZC7s— CryptoBuzz?‍??‍?‍? (@Crypto_Buzz_247) December 23, 2019Related Reading: What’s Next for the Bitcoin Blockchain? Top Developer Weighs InBearish Factors Remain Potent Although the outlook for Bitcoin is starting to look better after weeks of bearish action, there remain a few headwinds that may haunt the cryptocurrency market in the coming weeks.This week, the CME monthly Bitcoin futures contracts are set to expire.In a recent Twitter thread, a market commentator going by “Joel” mentioned this, showing that there is a seeming correlation between the expiry of CME monthly futures contracts for Bitcoin and price action.1/2$BTC
Updated CME dataKeys:
-70% of weeks leading up to the CME close are negatives
-70% of days before the close are negatives
-65% of closing days are positives
-Neg day before = 81% Pos closing day
-Above average volatility leading up to and during the closing day pic.twitter.com/z0wcYiuEmC— Joel (@JofDom) December 22, 2019His data shows that in the week ahead of all previous CME futures expiries, there was a 70% chance that Bitcoin trended lower, with the average loss coming out to 2% in seven days. This implies that BTC could easily drop again as the December 27 expiry nears; then again, though, the 2% loss is just an average, meaning that the CME expiry could spell doom for Bitcoin in the coming week.There’s also a sentiment from analysts that the PlusToken scam selling Bitcoin and Ethereum could continue to act as a bearish factor for the coming months, for the operators still have coins to sell.Relate Reading: XRP is Down 95% from Its 2018 Peak; What’s Next for the Embattled Crypto?Featured Image from ShutterstockThe post appeared first on NewsBTC