After an extended period of sideways trading, Bitcoin and the aggregated crypto markets have been able to surge today, which has allowed BTC to break above its previously strong resistance level that existed at $8,000.
Although this upwards surge is certainly bullish, Bitcoin does still face some resistance around $8,200, but a break above this level could quickly lead the cryptocurrency to once again surge towards the upper-$8,700 region.
Bitcoin Smashes Past $8,000 as Upwards Momentum Builds
At the time of writing, Bitcoin is trading up nearly 5% at its current price of $8,170, up significantly from daily lows of below $7,800.
Ever since earlier this month, BTC has struggled to climb back into the $8,000 region and appeared to have been forming a consolidation pattern that some analysts had expected to persist for the foreseeable future.
Despite this, today’s upwards surge appears to have marked an extension of the upwards momentum that the crypto has incurred over the past couple of months, which could ultimately lead BTC to continue climbing higher.
Josh Rager, a popular cryptocurrency analyst on Twitter, discussed the importance of BTC’s latest move upwards, explaining that a break above $8,200 could send it surging to the $8,700 level.
“$BTC Price Action: Bitcoin just broke above previous 2-week resistance. Testing the $8200s but currently is being held down at the top of the channel. If $BTC can break this channel, it’s heading to at least $8550 with eyes on $8700 and above,” he explained.
$BTC Price Action
Bitcoin just broke above previous 2-week resistance
Testing the $8200s but currently is being held down at the top of the channel
If $BTC can break this channel, it's heading to at least $8550 with eyes on $8700 and above pic.twitter.com/G8jiTTK5NU
— Josh Rager ? (@Josh_Rager) June 12, 2019
Previously, Bitcoin has faced strong levels of selling pressure in the upper-$8,000 area, which will likely require a significant amount of buying pressure to be broken above.
BTC May Be Forming a Reversal Pattern that Will Allow it to Climb Higher
The latest upwards movement may not be coming as a surprise to some analysts, as it has been pointed out that BTC was in the process of forming a diamond pattern that may have acted as a reversal sign that will allow the cryptocurrency to surge towards fresh year-to-date highs.
Jonny Moe, a popular cryptocurrency analyst on Twitter, discussed this in a recent tweet, explaining that Bitcoin may climb towards $9,000 next.
“Possible diamond forming on $BTC. Diamonds can be tricky as the shape can change as they form, but worth keeping an eye on. Can break either direction out of the consolidation, but typically a reversal pattern which would send us back into the upper $8,000s,” he noted.
Possible diamond forming on $BTC. Diamonds can be tricky as the shape can change as they form, but worth keeping an eye on.
Can break either direction out of the consolidation, but typically a reversal pattern which would send us back into the upper $8,000s. pic.twitter.com/d7lG0lwAod
— Jonny Moe (@JonnyMoeTrades) June 12, 2019
As the day continues on and Bitcoin reacts to its next resistance level around $8,200, it is probable that investors will gain greater insight into which direction the markets are heading next.
Featured image from Shutterstock.
