Bitcoin Bullish Trend to Continue Higher above $8500 after the recent retest off the $8420 area. The price managed to push higher in an impulsive manner and on the way to break above $9000 soon. Let’s check Bitcoin Technical Analysis for more levels and insights.
January 20, 2020 | AtoZ Markets – Bitcoin has been quite impressive with the recent bullish momentum. It has set the Bullish trend more stable despite earlier volatility in the market. The price climbed higher with proper zigzag pattern while successfully retesting the resistances broken as support.
Bitcoin is still expected to reach $9500 to $10,000 area as the 2020 Bullish Rally continues. The price is currently residing above $8500 area after certain rejection off the area recently. The Bulls are still quite comfortable pushing the price higher and may create new high breaking above the recent high price of $9000.
image: Bitcoin Market Cap
Bitcoin did plunge earlier which took the price below $8500 and created a worrying atmosphere among investors. Bitcoin being above 20% already by the starting of 2020 still persists to be a lucrative investment in the process. Though the overall Crypto market Cap has fallen roughly by $200 Billion since 2018, investors are currently quite optimisic for Bitcoin again. Bitcoin’s development on the protocol like lower off chain transaction and a privacy upgrade is helping Bulls to sustain the confidence.
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Bitcoin Bullish Trend above $8500 gaining Stronger
Bitcoin recently plunged below $8500 area with impulsive pressure but could not sustain the Bearish pressure. The price bounced off the $8420 area as soon as it pushed lower. Though the price is still quite impressive with the Bullish momentum but certain correction may be occur.
image: Bitcoin 4 Hour Chart
One of the concerning factor currently is the development of Bearish Divergence in the process. When Bitcoin broke above the $8420 area earlier with a daily close, it started to form Bearish Regular Divergence. The price did react to the Divergence with a retest off the $8420 area but still it is quite indecisive. The price forming a Gap and remaining below 20 EMA is a sign of low confidence currently. Though the overall Bullish Bias is still strong, but BTC needs certain sustainability. The MACD Histograms below 0.00 level is still insignificant to show any Divergence in favor of Bulls. As the day progress, along with certain Bullish Price Action, more confluence may occur in the process.
After the price broke above the declining channel, it is the first time the price retraced lower. As per traditional Break and Retest methodology, the retest is the part of building up the Bullish strength. The price above $8500 after certain rejection is also a sign of Bullish presence. According to Channel Price Target, the price has higher probability to push towards $10,900 area if it manages to remain above $8500.
To Conclude, Bitcoin Bullish Rally is all set to continue pushing higher above $8500 and reach $10,000. As the price remains above $8500 area with a daily close, further upward momentum is expected.