Welcome back bulls. Over the past few hours, Bitcoin (BTC) has begun to surge higher again per TradingView, with buyers finally stepping in after last week’s 11% decline. Since hitting $8,200 late last week, the price of the leading cryptocurrency has exploded higher, surging to just shy of $9,400 minutes ago as of the time of writing this article.
The cryptocurrency failed to surmount $9,400, though the technical backdrop is starting to support further price appreciation.
Bitcoin Explodes Past $9,400 In Massive Move
Firstly, this move has brought Bitcoin above the key 200-day simple moving average. While the price has yet to close above this key technical level, sitting around $9,000, this specific moving average has long been seen as analysts as an indicator of an asset’s long-term directionality.
With the daily candle closing in literal minutes, it seems that the asset will flip this resistance into support, boding well for bulls on a long-term basis.
This move has also allowed BTC to break out of “an inverse head and shoulders formation (with a very weak right shoulder, which makes it often more powerful.”
Bitcoin is breaking out of an inverse head and shoulder formation (with a very weak right should which make it often more powerful). It already broke the big wedge pattern. #bitcoin $BTC pic.twitter.com/v7XLtK2uac
— Raoul Pal (@RaoulGMI) January 28, 2020
Trader Mayne, who called this surge towards $9,350 last hour, says that the surge to this level may be a precursor to a further rally to $9,800 — or another 5% gains from the current levels.
— Mayne (@Tradermayne) January 28, 2020
CJ noted earlier today that the $9,223 was a “pivotal” level for BTC, making this latest surge above this level likely “pivotal” for the bullish argument.
— CJ (@IrnCrypt) January 28, 2020
$9,600 Is Overhead
Where the latest move is undoubtedly bullish, the cryptocurrency will need to close a weekly candle, maybe the upcoming one, above $9,557, for that sets a higher high in this market trend. This close should cement the idea that the long-term downtrend that brought the leading digital asset from $14,000 to $6,400 is decisively over. As Josh Rager wrote:
“The downtrend is clearly broken on high time frame and if Bitcoin closes above $9557, that’s a higher-high.”
How long you bears going to stay bearish?
The downtrend is clearly broken on high time frame and if Bitcoin closes above $9557, that's a higher-high
Sure, BTC could pullback but stop with the $5k calls until price breaks at least below $8k (if it even gets there again) pic.twitter.com/MHLuSQih6M
— Josh Rager ? (@Josh_Rager) January 28, 2020
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