The recent move higher coincides with some favorable seasonality for bitcoin. Seasonal factors could lead to better things for the cryptocurrency in the second quarter, a period in which bitcoin has historically fared well.
Related: $8K Bitcoin Rally: Hedge Fund Sees Big Upside
Bitcoin’s rally above $8,000 comes just a couple of weeks after the cryptocurrency committed a death cross, where its 200-day moving average fell below its 50-day line. The death cross is normally bearish, but it needs to be validated, something bitcoin did not do.
Keeping with the technical theme, if bitcoin can rise to $8,500, but not build on those gains, some technical analyst fear a retreat to $8,000 or lower would be in the cards.
For more information on the cryptocurrency market, visit our Bitcoin category.