Bitcoin Just Surged to $9,400: Why Traders Think Price Will Explode Even Further

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.

$9800

— 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.

Pivotal. pic.twitter.com/66PdJet2m6

— 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.”

$BTC

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

Featured Image from Shutterstock