Major Technical Breakout Will Draw Bitcoin Bulls’ Reaction
The price of BTC/USD rallied again after falling sharply to its support level at $8.4k. Currently, all indicators point to additional surges above $8.8k and $9k in the sessions ahead.
Not so long ago, the price plummetted from the $8,750 zone. It continued the downward trajectory beneath some essential supports. All the same, bitcoin rebounded above the $8.5k level later.
Analysis of the pair’s hourly chat indicates the formation of a robust bullish engulfing pattern. Consequently, the bitcoin price was able to stabilize at the support zone at $8.5k. The gains recorded recently were technically remarkable and implied that the bulls rebuffed the $8.5k support.
The same chart shows that the price surged over a central bearish channel with its barrier close to $8,665. The price rose beyond the $8.7k level to the upside.
At the moment, the BTC price is visiting the 100 hourly SMA and striving to secure momentum over levels between $8,780 and $8.8k. A successful upside above the $8.8k barrier and the 100 hourly SMA advances the price’s possibility of moving further towards the upside.
In case of more gains, the price may first focus on $9k. An upswing over the barrier at $9k could trigger strong movements towards the barriers at $9.2k and $9.3k.
If the price continues with its upward swing, it could come up with a bigger leap towards $10k and $11k ahead.
Alternately, the pair were too failing to go past the $8.8k barrier, and the 100 hourly SMA may lead to a correction. The closest support is around $8,670 or the channel hurdle zone.
The first significant support on the downside is close to $8,560, and a movement below it could make the pair to retract to the major support zone at $8.5k. However, a daily close beneath $8.5k has the potential of erasing the present bullish perspective.