Bitcoin shows signs of a massive bull run, but there is a crucial hurdle

Bitcoin’s meteoric upward trend in the past few days and weeks has allowed the cryptocurrency to break through several levels of resistance that previously hindered rising price action and yesterday’s $ 8,000 breakthrough sparked bullish euphoria.

Analysts are now realizing that Bitcoin may have entered the early stages of the next big bull run, but it’s important to note that the way it responds to that one key price level could be the only factor that made it unbelievable bullish possibility confirmed or invalidated.

Bitcoin hovers around key support levels, while analysts watch out for increased volatility

At the time of writing, Bitcoin is trading at $ 7,950, marking a sharp drop from the daily highs of just under $ 8,400 that were reached at the peak of the recent rally.

It seems that Bitcoin could be close to falling below its main support at $ 8,000 in the near future, although any slight drop below that level has been quickly absorbed by buyers in the past few hours.

Horn Hairs, a popular crypto-analyst on Twitter, said in a recent tweet, he watched closely as BTC responds to the $ 8,000 to see in which direction it will go next, as this is the key factor for could be whether this recent recovery marks a long-term turnaround or not.

May be jumping the gun here but I'm willing to hop back in if we see another solid bounce & recovery at this demand. On the other hand a close back below the range high would make me flip my bias & short a retest. If this does trend higher this will be an entry worth holding. pic.twitter.com/c1mQOKtV4A

— HornHairs 🌊 (@CryptoHornHairs) January 8, 2020

Holding over $ 8,000 could confirm next major bull market

Peter Brandt, one of the best-known crypto-analysts, recently tweeted about Bitcoin and explained that BTC is currently trying to break out of the upper limit of a multi-year downward channel, but the bulls must continue to maintain buying pressure for this to be confirmed and BTC in the early phases of its next bull market are entering.

His main focus is also on the descending channel and whether Bitcoin can now rise significantly. He also believes it is important that enough “crypto supporters” have left the market since December 2017, because then you can only speak of a new bull market.

Has a new bull market began in #Bitcoin $BTC?
1. Market held support at lower boundary of multi-yr channel
2. Small H&S bottom on daily chart
3. Pending penetration of 6+ mo channel
If enough cryptocultists have been shaken out since Dec '17, then "yes"
If not, then "no" pic.twitter.com/vpKQeOKqLI

— Peter Brandt (@PeterLBrandt) January 8, 2020

The next few hours could shed light on the validity of this upcoming channel outbreak, as a slump below $ 8,000 could trigger a larger sell-off that will bring Bitcoin back into a bearish phase.