Bitcoin Is Back Above $9,000, What's Next?
The pioneer cryptocurrency breaks critical ground.
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Bitcoin is back above $9,000 and several technical indicators estimate that it could soon enter a parabolic move.
A Bull Rally Is on the Horizon
Following the recent price rejection off the 200-day moving average on Jan. 19, Bitcoin plunged over 10%.
The correction allowed it to test the 150-day moving average, which served as support preventing the flagship cryptocurrency from a steeper decline. Now, BTC appears to have closed above the 200-day moving average indicating that a new uptrend could be underway.
Based on historical data, turning the 200-day moving average into support has proven to push Bitcoin into parabolic moves.
The last time such an exponential upward move happened was on Apr. 2, 2019. Following a bullish impulse that took BTC above the 200-day moving average, investors appeared to have entered a FOMO (fear-of-missing-out) stage.
As a result, the pioneer cryptocurrency surged over 180% to hit a high of nearly $14,000 on June 26, 2019.
Adding to the bullish sentiment, the TD sequential indicator also presented a buy signal within the same time frame.
The bullish pattern formed the moment the current green two candlestick began trading above the preceding green one candle. This technical index estimates that Bitcoin could start a new upward countdown until a sell signal develops in the form of a green nine candlestick.
Despite the bullish outlook, it is worth noting that Bitcoin has not been able to move above the recent high of $9,170. Thus, the uptrend could only be resumed until the pioneer cryptocurrency is able to close above this resistance level.
A spike in demand could indeed push BTC above $9,170 triggering a further advance to the next level of resistance at around $9,800.
Nevertheless, if Bitcoin fails to break above this significant price barrier, a pull back could be triggered. An increase in the selling pressure behind this crypto could take it to the 78.6 or 61.8% Fibonacci retracement levels.
These levels of support sit at $8,700 and $8,300, respectively.
It remains to be seen whether demand will continue to rise in the following hours allowing Bitcoin to keep the 200-day moving average as support. If such an important support level fails to hold, then one could expect a retracement.