Bitcoin May Experience a Huge Rally
The price of BTC/USD gained massive momentum and surged over the barrier at $9,550 resistance to nullify a major head and shoulders pattern. It appears that the pair is positioned for a huge rally over $10k.
Last week, the possibility of head and shoulders pattern was discussed last week for the pair under $9.5k. The price moved to the downside under $9.3k, but the sellers could not take the price under the major support at $9,150.
Hence, the buyers became dominant, thereby pumping the price over $9.4k. Further, the price was able to break the barrier at $9.5k and the 100 hourly SMA.
There was the formation of fresh high this year close to $9,609 prior to some losses. It was able to revisit the $9,250 zone and extended the downside move to form a low close to $9,232.
A look at the hourly chart of BTC against the USD shows the formation of a connecting bullish trend line with support close to $9,280. Hence, it appears that support exists close to $9,280 and $9,240.
The major support remains close to $9,150 and a move under it poses a risk of a huge downside retracement to $8.8k or even $8.6k.
The barriers that exist at $9.5k and $9,550 are quite essential. If the price closes over the two barriers, it will lead to more upsides towards the $10k barrier zone.
Any additional gains over $10k could lead to $10.4k barrier in the sessions ahead. On the other hand, if the pair keeps striving close to $9.5k and $9,550 barrier, there is a risk of declining beneath $9,240 and $9,150 support soon.