Bitcoin Bulls Will Soon React to a Major Technical Breakout

News / 22.01.2020

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.

 

Source: Cryptopress.

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Dacosta Osei-Tutu, a first degree holder in Nursing, who couples his Nursing career with blockchain blogging, has a great passion for the blockchain technology and aims to play a vital role in applying this revolutionary technology to disrupt the healthcare system in Africa.