Bitcoin Eyes $8.5K Hurdle After Biggest Single-Day Price Gain in Five Weeks

View Bitcoin could test key resistance above $8,500 in the next day or two, having eked out the biggest single-day rise in five weeks on Monday.

The daily chart indicators have turned bullish with Monday's price rise.

Bitcoin logged the biggest single-day price gain in five weeks on Monday, opening doors for a stronger recovery rally to key resistance above $8,500.

The top cryptocurrency by market value bounced up from a historically strong 100-week MA support near $7,750 and closed at $8,205 on Bitstamp, representing a 4.47 percent gain on the daily opening price of $7,863.

That is the biggest single-day price rise since Sept. 2.

Monday's price rise could be termed as a relief rally, as the cryptocurrency was looking oversold, having dropped by more than $2,000 in the last week of September.

Market analyst Josh Rager tweeted earlier today that bitcoin price could now run up to $8,500.

Bitcoin created a bullish outside bar candlestick pattern on Monday, which occurs when the day begins on a pessimistic note, but ends with optimism, engulfing preceding day's high and low.

The outside bar candle is widely considered an early sign of bullish reversal, especially when it appears at the bottom of an established downtrend or a notable price drop.

A bullish divergence occurs when the RSI produces higher lows, contradicting lower lows on the price chart.