Bitcoin Bulls Will Soon React to a Major Technical Breakout
After the price of BTC/USD dipped sharply to the support at $8.4k, it retraced to the upside. At the moment, the price is showing signs of additional gains over $8.8k and $9k in the sessions ahead.
In recent times, the price dipped sharply from the $8,750 zone. It continued beneath some crucial supports, but later retraced above $8.5k.
A look at the hourly chart of the pair shows the formation of a powerful bullish engulfing pattern and the price was able to settle over the support zone at $8.5k. The gains incurred recently were technically remarkable as it suggests the bulls’ rejection of the $8.5k support.
Further, on the same chart, the price surged over a major bearish channel with barrier close to $8,665. The price surged past the $8.7k level to the upside.
The price is now visiting the 100 hourly SMA and striving to secure momentum over levels between $8,780 and $8.8k. A successful upside above the barrier at $8.8k and the 100 hourly SMA suggests a likelihood of the price to move further to the upside.
If there are more upsides, the price may first focus on $9k. Asurge over the barrier at $9k could prompt a powerful increase towards the barriers at $9.2k and $9.3k.
If the price continues to the upside, it could come up with bigger upward move towards $10k and $11k ahead.
The failure of the pair to surge past the barrier at $8.8k and the 100 hourly SMA may lead to a correction. A first support is close to $8,670 or the channel hurdle zone.
The initial major support on the downside is close to $8,560 and a move beneath it could make the pair to visit the major support zone at $8.5k. However, a daily close beneath $8.5k could invalidate the present bullish perspective.