On Tuesday, Bitcoin registered a huge one-day price hike that was sharper than any other one-day performance so far this month. By surpassing the $8,400 resistance, Bitcoin is now closely in line with the 200-day average which is currently set at just over $9,100.
Bitcoin enjoyed gains of almost 8.75% over the course of Tuesday, pushing its price up by an impressive $800. In mid-December, we saw another price hike with similar gusto, but the starting point was much lower, at just under $6,500. In contrast, Tuesday’s performance is exciting because Bitcoin’s been on a role lately and many are expecting it to continue its upward climb. Breaking through a tough resistance like Bitcoin has done is further proof that the bull run is very likely to follow its forecasted path.
Another piece of good news for the Bulls that this one-day gain supports is that the months-long bear term is now behind the world’s most popular cryptocurrency. Over the past week, we saw gains for Bitcoin in the double digits. Now, with Tuesday’s gains, a new trend seems all but fixed into place. The breakout at nearly $8,500 on Tuesday sets a new resistance level, even above the high that was set on January 8th.
Should Bitcoin’s performance continue as it is now, which is expected by many top analysts, the popular coin will be knocking on the door of the 200-day MA of more than $9,100. That’s quite a jump from where Bitcoin sat just a month before.
Throughout Tuesday, Bitcoin was trading at its highest in the neighborhood of $8,900. At press time, a day later, Bitcoin has slid back to $8,700, evidence from the charts suggests that the slide is part of normal fluctuation and that Bitcoin will soon return to its ascent.
One chart providing comfort to the bulls is the daily chart. Not only did Bitcoin breach the previous resistance levels but volumes for buying were also at their highest point in more than two months. And, since buying volume looks like it will continue to increase into the near future before eventually crossing into overbought territory, appreciation is expected.
The hourly charts on Tuesday also indicated a strong case for upward momentum. The pullback from the daily high of almost $9,000 to just over $8,500 went hand-in-hand with a drop in volume. Since we know that price drops triggered by low trading volume does not generally indicate a long-term issue for a coin’s price, this indicator shows that the price slide is most likely temporary.
Given the several factors discussed, all arrows are pointing at Bitcoin climbing past the $9,000 resistance, and soon. In fact, it will likely push even further than that. Some are quoting resistance being set at almost $10,400 within the next couple of months. For that to happen as soon as some suspect it will, however, Bitcoin would have to close well above the $9,100 mark.