Bitcoin (BTC) ended the day on a high note, with the cryptocurrency closing its daily candle above a key support level, eluding to the possibility that it will now begin its ascent to its next critical resistance region.
This near-term bullishness may have major implications for Bitcoin’s future, as analysts are noting that the cryptocurrency is about to reach the apex of a massive multi-year pennant that was formed throughout the course of its 2017 parabolic rally.
If Bitcoin validates the bullishness of this formation by posting a decisive break above it, it is highly probable that the crypto could be thrust into its next insane bull rally – and technical analysis seems to support the notion that this bull-favoring movement is imminent.
Bitcoin races towards $10,000 as bulls grow aggressive
Presently, Bitcoin is trading up marginally at its current price of $9,770, which is right around where it has been trading at over the course of the day.
Although this sideways grind and series of micro rejections at just over $9,800 may seem to be bearish on the surface, it is important to note that bulls were able to hold the crypto above its key support at $9,700 prior to its daily candle close.
Satoshi Flipper, a prominent crypto analyst, explained that Bitcoin’s latest daily close is “very bullish,” referencing a chart showing the support the crypto has at $9,700 and its next key resistance level at $10,900.
“Very bullish daily close BTC – $10k+ soon.”
Will BTC’s next rally mark a major technical breakout?
It is important to note that if Bitcoin rallies past roughly $11,500, the cryptocurrency would be breaking above the upper boundary of the massive pennant that it has formed over the past few years.
If this type of breakout occurs, the crypto could be in for another insane rally.
Jonny Moe, another well-respected analyst, pointed to this technical formation in a recent chart, explaining that BTC’s recent double clouded Ichimoku break aligns well with a potentially imminent breakout above this upper boundary.
“It aligns pretty well with the weekly doubled cloud breakout.”
If Bitcoin’s bulls extend their current momentum just a tad further, the crypto could be in for a wild 2020.
Bitcoin | BTC
Updated: Feb 8 at 6:38 am UTCBitcoin, currently ranked #1 by market cap, is down 0.12% over the past 24 hours. BTC has a market cap of $177.59B with a 24 hour volume of $34.37B.
Chart by CryptoCompare
Bitcoin is down 0.12% over the past 24 hours.
