Bitcoin (BTC) prices are on another expansion spree, bringing the price to a new range. But if the leading asset is to regain five-digit prices, it needs to break above a few more vital resistance levels.
Bitcoin Stopped Just Under $8,700 Resistance
The price move this Tuesday brought BTC up from recent stagnation around $8,100, to just below $8,700, which represents the first of the key resistance levels. Until that level, all other milestones were taken over quickly, as bearish shorts got liquidated. This particular price point has historically held down bitcoin price on 3 separate occasions, with each bearish correction shortly followed by a strong surge.
Bitcoin remains relatively range-bound, with prices hovering constantly to attack resistance levels. BTC stalled at around $8,792, retreating and attempting to break the $8,700 resistance. Soon after that, bitcoin prices broke above that range to $8,718, possibly pointing to a bigger breakout rally, or a retreat below the resistance level.
The other two resistance levels appear to be around $9,350 and $9,940. Both of these are also levels which have had strong effects on bitcoin price over the last 9 months.
Current Rally Looks Strong.
Bitcoin manages to break to new highs relatively fast, and new resistance levels are seen coming relatively soon. This year, BTC established lows around $7,000 in December before reviving in fine style over the new year.
We got the breakout EVERYONE was predicting (#btc decided to play nice). Most are calling 9200 the next resistance, but I think we’ll “touch” 9400 then pull back to retest last support, then move to the next high. #bitcoin #cryptocurrency #hodl #halvening pic.twitter.com/nOS4TA9aNk
— Mad Miner [SHA-256] (@Mad4Mining) January 14, 2020
The $9,400 level is quickly becoming a highly anticipated area for BTC traders, should bulls successfully close thought the current $8,700 ceiling. This price level was an extremely poignant support between July and September of last year, and propped up BTC price after three heavy down swings. Breaking above this level would re-establish a solid support for bitcoin as bulls eye down the fabled $10K target.
From there, the final hurdle before five figures is likely to be around the $9,900 level. Looking at the chart above, we can see that this level also played a key role in supporting bitcoin during Q3, 2019. Perhaps more importantly, this level also acted as a strong resistance during BTC’s attempt to retrace back above $10,000 during the November rally. Any money trapped at this level is likely to offload on to the market if this level is achieved again.
Best January Since 2012
At prices around $8,700, trader excitement and bot activity may be the chief drivers of price action. The new price moves may happen slower, or faster than expected, as the interplay of spot and futures markets discovers the new prices for BTC in 2020. For now, bitcoin staves off bearish scenarios, but volatility is not out of the question. In mid-January, BTC is now breaking previous January trends of a price slide, and rallying back to levels not seen in the past three months.
What do you think about bitcoin price expansion this January? Share your thoughts in the comments section below!
Images via Shutterstock, Twitter @Mad4Mining