Yesterday evening Bitcoin (BTC) incurred a massive amount of buying pressure that led its price to rally to fresh 2020 highs of $9,500 before it found some strong resistance that led to a slight retrace towards $9,300.
It is important to note that the cryptocurrency has been able to maintain above its previously established year-to-date highs of $9,200, which is a bullish sign that suggests this latest rally was more than just a fleeting surge.
Now, one analyst its noting that BTC is caught within a bullish technical pattern that statistically leads to major upwards movements, with a break above this pattern’s upper boundary potentially sparking the crypto’s next parabolic phase.
Bitcoin Rallies to Fresh 2020 Highs, and This Is Just the Beginning
Currently, BTC is trading just a hair below its intraday highs of $9,500 that were set at the peak of the rally, and it does appear that there is some significant resistance at this level.
Importantly, the cryptocurrency was able to close above $9,200 on its daily chart, which may validate multiple bullish technical formations.
“Positive volume flow, guppy flipping bullish, above the cloud with $BTC. Breaking 9200 is the magic number. Looks like we’ll get a kumo twist here soon as well in the near future. 1D Ichi on the 20, 60, 120, 30 settings has been pretty spot on with the twists,” Josh McGruff – a popular cryptocurrency analyst – explained in a tweet from just prior to the rally.
Positive volume flow, guppy flipping bullish, above the cloud with $BTC
Breaking 9200 is the magic number. Looks like we'll get a kumo twist here soon as well in the near future.
1D Ichi on the 20, 60, 120, 30 settings has been pretty spot on with the twists. pic.twitter.com/eN0oaUUus4
— Josh McGruff (@JoshMcGruff) January 28, 2020
This Massive Symmetrical Triangle Means Another Parabolic Rally is Imminent
The aforementioned bull-favoring technical formations aren’t the only things that could lead Bitcoin to see significantly further gains, as the crypto is currently trading within a multi-year symmetrical triangle – a formation that leads to upwards breakouts 60% of the time.
“Symmetrical triangles break upwards 60% of the time. That’s It,” Galaxy, another popular crypto analyst on Twitter, explained in a tweet while referencing the chart seen below.
Symmetrical triangles break upwards 60% of the time.
— Galaxy (@galaxyBTC) January 29, 2020
While keeping these multiple highly bullish factors in mind, it does appear to be growing increasingly likely that the bullish market structure Bitcoin has developed throughout 2020 will lead the crypto to see significantly further upwards momentum in months and years ahead.
Featured image from Shutterstock.