Bitcoin has reclaimed the support above $9,000 after smashing through the resistances I highlighted yesterday at $8,700, and $8,800. It is clear that Bitcoin bulls intend to finish the month of January not only in the positive but also with a bang.
At the time of writing, BTC/USD is teetering at $9,081 following an impressive 2% growth in value on the day. The prevailing strong bullish trend is driving off the last of the bears in the preparation for the next bull-run to $10,000.
A broader look at the cryptocurrency market on a daily basis, it is apparent that Bitcoin’s jump above $9,000 continues to bullishly impact the market. Other cryptocurrencies performing exceptionally well on Tuesday (at the beginning of the European session) include Litecoin which is trading 3.37% higher, EOS and its 2% rise on the day and Bitcoin Cash with its 1.64% rise in value.
BTC/USD 4-hour chart
The breakout that emanates from the pennant pattern on Sunday is still largely the driving force for the gains (based on the technical picture). The Relative Strength Index (RSI) return into the overbought region (above 70) suggests that it’s the bulls’ turn. Similarly, the Elliot Wave Oscillator’s continuous bullish session since Sunday cements the buyers’ position in the market. Therefore, I expect Bitcoin to continue with the rally above $9,100 and if the resistance at $9,200 is broken, BTC could eventually forge a pathway to $10,000.
Bitcoin Key Levels
Spot rate: $9,081
Relative change: $185
Percentage change: 2%
Trend: Bullish
Volatility: High
Support: $8,800, $8,400 and $8,200
Resistance: $9,100 and $9,200
