How long will the Bitcoin Rally 2020 continue? Bitcoin is currently quite stable above $8500 and may push higher towards $9500 area. Despite being a long-term bearish trend, the bullish pressure may establish a strong trend. Let’s check today’s Bitcoin Technical Analysis for more levels and insights.
January 15, 2020 | AtoZ Markets – Bitcoin managed to sustain the bullish momentum breaking above $8500 area with a daily close as we discussed in our Bitcoin analysis of yesterday. The price is currently residing above $8600 while clearing the recent lower high. Despite the slower gains on the upside, the consistency it managed to achieve along the way was great.
Bitcoin has already upped by 20% this year
Bitcoin and Gold gained momentum after U.S. and Iran tensions increased. Investors derived their funds from equities and currencies to Bitcoin and Gold at that time. Currently, as both countries decide not to go for war, the equity markets regained liquidity. As a result, Bitcoin and Gold lost certain momentum.
Bitcoin has already upped by 20% this year. Though the bias is still quite strong on the bullish side, certain correction may be observed while pushing higher in the coming days.
How long will the Bitcoin Rally 2020 Continue?
Bitcoin is stable above $8500 with a daily close and may push higher towards $9500 area in the coming days. The price is currently residing above $8600 area while pushing lower towards the channel support. As the price bounced off the $6500 area earlier, the bullish momentum has been consistent. So, being above the 20 EMA as well as $8500 area, the bullish pressure is currently quite stable and may push higher towards $9500.
image: Bitcoin Daily Chart
The price moved lower today despite the recent impulsive bullish daily close. Though the bullish pressure was impulsive, there has not been any retracement along the way. So, currently the price may retrace back to $8500 area again before establishing another bullish run in the coming days. Moreover, the dynamic level of 20 EMA is quite far from the current price area which may lead to Mean Reversion pull lower. As the price revert back to the Mean and find support, the upward momentum is expected to continue.
Bitcoin is Stable above $8500 and may push higher
The price formed a Bearish Divergence in 4 hour chart while progressing higher above $8500 area. As a result, certain bearish pressure may occur along the way. The price did break above the Channel Resistance quite smoothly but there has been no retrace towards the resistance level it broke earlier. So, the bullish trend may continue after the price manages to bounce off the $8500 area.
image: Bitcoin 4 Hour Chart
The bullish trend is still quite intact and expected to continue pushing higher. Though certain bearish pressure is being observed currently, a bounce off the $8500 will result in strong confluence from the dynamic level 20 EMA. The bearish retracement is quite imminent as the Divergence and MACD lines are at the verge of a cross. As the price remains above $8000 area, the bullish bias may continue.
To conclude, Bitcoin may retrace towards $8500 area again before establishing another strong impulsive bullish pressure towards $9500 in the coming days.