Bitcoin price has moved above $8,000, which translates into a 15% rise since the beginning of the year. More importantly, the price action now trades above the 100-DMA, which should start offering support to bulls in the future.
On January 08, the world’s largest cryptocurrency made a similar move but failed to clear the channel resistance at $8,400 (see chart below). The price action rotated lower to find more buyers at $7,200 - the horizontal support - before it returned back again to test the channel resistance for the second time in just a few days.
This signals that this Bitcoin move may have legs for a more substantial push higher. A break of this level should pave the way for a test of the key short-term resistance area above the $9,000 mark, where the triple confluence of resistance - 38.2% Fibonacci retracement, the 200-DMA, and the horizontal line - are located.
On the downside, the 100-DMA offers immediate support at $7,950 while $7,200 represents the next layer of support near the $7,200 mark. The strongest support is located just above the $7,000 handle where the major ascending trend line (the red line) sits.
On January 08, the world’s largest cryptocurrency made a similar move but failed to clear the channel resistance at $8,400 (see chart below). The price action rotated lower to find more buyers at $7,200 - the horizontal support - before it returned back again to test the channel resistance for the second time in just a few days.
This signals that this Bitcoin move may have legs for a more substantial push higher. A break of this level should pave the way for a test of the key short-term resistance area above the $9,000 mark, where the triple confluence of resistance - 38.2% Fibonacci retracement, the 200-DMA, and the horizontal line - are located.
On the downside, the 100-DMA offers immediate support at $7,950 while $7,200 represents the next layer of support near the $7,200 mark. The strongest support is located just above the $7,000 handle where the major ascending trend line (the red line) sits.
Comment:
As expected, Bitcoin has broken out of the descending channel as the bulls now eye $9,000 as their next target.