Bitcoin's trading indicators look bullish following recent correction

Based on the 1-month chart, Bitcoin remains bullish.

Following the peak of $1,177 on Nov. 30, 2013, Bitcoin's market valuation plummeted 86 percent to reach a low of $164 on Jan. 14, 2015.

Similar to what happened between 2013 and 2017, Bitcoin is coming from an 84 percent correction following the $19,760 top.

The bullish sentiment can also be perceived on the 1-week chart as Bitcoin continues to trade above its 7-week moving average, which has acted as a strong support level since the rally started in early February, rejecting any moves below it and allowing Bitcoin's market valuation to bounce to higher highs.

For the continuation of the bull trend to be confirmed, it will be ideal if the 7-week MA keeps holding and Bitcoin manages to trade above the 16.18 percent Fibonacci retracement level.

Upon the breakout point, the bull pennant predicts a 46 percent target to the upside that was determined by measuring the height of the flagpole and could take Bitcoin to around $16,300.

A closer look at the pennant on the 12-hour chart indicates that Bitcoin is trading inside a descending parallel channel.

In the long-term perspective, everything seems to be pointing out that Bitcoin could soon resume its bull rally and it will be heading to new higher highs despite the corrections that it has had and will continue to have on its way up as it happened in the 2015-2017 bull market.

Bakkt will begin testing its Bitcoin futures contracts on July 22, and China upheld Bitcoin's status as "Virtual property" reaffirming that holders will be protected by the country's legal system in disputes.

Even though in the short-term, Bitcoin could fall back to around $9,000 or even $7,000, the bigger timeframes indicate that the bull market is already in full force.