Bitcoin Could Still Rally

News / 17.01.2020

The price of BTC against the USD was able to correct lower below $8.7k. However, it was able to secure a powerful support above $8.5k. At the moment, the price is increasing and may rally if it surges above the hurdle zone between $8,840 and $8,900.

In the previous day, there was a retracement to the downside following the rejection of BTC/USD close to $8.9k hurdle. The price went below the support at $8.7k, but the buyers were able to defend $8.54k and $8.5k.

The sellers could not take the price below the neckline support of the double top pattern at $8.54k. It led to a modest increment over the hurdle at $8.7k.

Currently, the price is moving close to the hurdles at $8.8k and $8.82k. A look at the hourly chart of BTC against the USD shows the formation of a fresh breakout pattern with hurdle close to $8,825.

A successful push over the triangle barrier and $8,840 signals greater chances of additional upsides over the barrier at $8.9k. Hence, there is a likelihood of the double top pattern to be aborted and the price could surge over $9k soon.

The failure to surge over the triangle barrier and $8,840 could prompt a move to the downside. The initial major support is close to the triangle at $8,640.

In the event of a downside break, the sellers could likely focus on taking the price to beneath the major supports at $8,540 and $8,500. It may lead to an extended decline towards $8.2k.

Generally, the bulls are striving big time and it appears that it will be difficult to take the price beneath the supports at $8,540 and $8,500.

 

Source: Cryptopress

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Sudarshan M is a long time crypto-enthusiast. Pulled in by bitcoin early on, it did not take long for Sudarshan to divert all of his academic attention from business studies to blockchain by doing his Masters and eventually pursuing his PhD in the subject.