Bitcoin (BTC) is currently in the process of revisiting its recently established 2020 highs of $9,550, with its ongoing upsurge coming close on the heels of yesterday evening’s selloff that led the crypto to dip as low as $9,200.
Bull’s ability to post a strong defense of this level suggests that the cryptocurrency could be on the cusp of setting fresh 2020 highs, and there are a few key factors that analysts are watching that could suggest BTC will soon break into the coveted five-figure price region.
Bitcoin Rallies Towards $9,500 as Analysts Watch for BTC to Set Fresh 2020 Highs
At the time of writing, Bitcoin is trading up just over 1% at its current price of $9,450, which marks a notable climb from daily lows of $9,200 that were set overnight when bears attempted to invalidate the cryptocurrency’s recent uptrend.
Because bulls were able to post a strong a defense of the support that exists around $9,200, it does appear to be increasingly likely that the cryptocurrency will soon see a continuation of its recent uptrend.
In order for BTC to make an attempt at breaking above $10,000, it is imperative that bulls decisively push the crypto above its key resistance at $9,500.
Teddy, a popular crypto analyst on Twitter, noted in a recent tweet that Bitcoin is currently caught within an ascending channel, with the overnight bounce marking a strong defense of the median of this channel.
“BTC: Even on shorter timeframes, the bulls are defending that median with their dear life – genuinely curious to see it play out in the next few days,” he explained while referencing the below chart.
Even on shorter timeframes, the bulls are defending that median with their dear life – genuinely curious to see it play our in the next few days pic.twitter.com/Ysb48RInLU
— TEDDY (₿) (@TeddyCleps) February 2, 2020
These Factors Suggest a Move to Over $10,000 Could be Imminent
Nik Patel – another prominent and well-respected cryptocurrency analyst – explained in a recent blog post that BTC is currently consolidating above its 200-day moving average, with its current bout of consolidation above this level being similar to that seen in the past prior to BTC setting new highs.
Importantly, Patel also goes on to note that he believes Bitcoin’s market structure will remain bearish until it posts a strong break above $10,600.
“Until we close above $10,600, market structure is still bearish and this could well be a lower-high. Nonetheless, there are no bearish signs as of yet… The strong close above the 200MA and successful retest of last week’s high as new support is certainly not bearish,” he explained.
If Bitcoin does break above its resistance at $9,500 today, it is highly probable that the cryptocurrency will rally until it reaches its key resistance at $10,600, with a break above this level potentially catalyzing a massive rally.
Featured image from Shutterstock.
