After drifting lower over the past few days, Bitcoin’s bulls have been able to post a strong defense of the support that exists within the lower-$9,000 region, which subsequently catalyzed a major upwards movement that has led BTC back up to its key resistance.
This notable upswing, however, may not be enough to invalidate the bearishness that the crypto incurred over the past several days, as it has still been unable to post a sustained break of the resistance around $9,550.
If the cryptocurrency fails to extend this momentum and close above this key resistance level, this move could simply be a blip that is followed by further downside.
Bitcoin Races Towards Key Resistance as Bulls Defend Support
At the time of writing, Bitcoin is trading up over 3% at its current price of $9,430, which marks a notable rally from its recent lows of $9,100 that were set at the bottom of yesterday’s selloff.
The slow downwards grind that BTC experienced over the past three days came about after the crypto made an attempt to rally past $9,600, but its sharp surge was met with intense selling pressure.
In the near-term, bulls do appear to be attempting to form a bullish continuation pattern called a “rising three methods,” and a strong daily close will confirm this possibility.
“Bitcoin daily – Though its early BTC is working on a variation of the bullish continuation pattern called ‘Rising three methods,’” Big Cheds, a popular crypto analyst on Twitter, explained in a recent tweet.
$BTC #Bitcoin daily – Though its early $BTC is working on a variation of the bullish continuation pattern called "Rising three methods" pic.twitter.com/MxKYMdmvyy
— Cheds (Trading Quotes) (@BigCheds) February 5, 2020
Here’s the Level Bulls Need to Propel BTC Past in Order for it to Reach $10,000
In order for today’s bullish move to completely negate the bearishness that came about as a result of its multi-day downtrend, it is critical that bulls propel it decisively past $9,550.
Josh Rager, another prominent cryptocurrency analyst on Twitter, explained in a recent tweet that once Bitcoin posts a decisive close above $9,550, there isn’t much resistance stopping it from reaching the coveted five figure price region.
“BTC erasing the last 3 days of loss with one candle. The magic number is to still get above the $9550s, with a close above there, the price would likely continue upward as there isn’t a lot of resistance before $10k,” he explained.
https://twitter.com/josh_rager/status/1225052429491851266?s=21
How the cryptocurrency trades in the coming several hours will be critical for determining the long-term significance of this latest movement, as another rejection at $9,550 would be highly bearish.
Featured image from Shutterstock.
