On Wednesday morning Bitcoin perked up and punched above the $8,300 resistance during the U.S. trading session.
The 5% rally was well-timed as Bitcoin price was weakening after successfully managing to break above $8,200 on Monday.
Interestingly, Wednesday's upside move brought Bitcoin price right to the 200-day moving average at $8,700.
Bitcoin burst through this node on a high volume spike and the move to $8,730 was followed by a bit of profit-taking.
The move to $8,750 is also slightly above the 20-MA of the Bollinger Band indicator and volume permitting, the digital asset could be on the path to set a higher high by overcoming the previous local high at $9,750.
Since August 19, Bitcoin price advances have been capped at 52 and 55 on the RSI so while this is typically bullish territory, traders might keep an eye on the region to see if purchasing volume and candlestick patterns suggest that Bitcoin is becoming over-extended.
Ultimately, a close above $8,750 was desirable and while Wednesday's close at $8,600 is below this point, Bitcoin price is still well-positioned for additional growth.
Based on today's move, failure to gain above $8,600 could see Bitcoin pull back to the 61.8% Fibonacci retracement level at $8,316.
As shown by the Bitcoin SOPR chart above, the Spend Output Profit Ratio and Bitcoin price are both on making their way toward 1.
Similar to this time, Bitcoin price could eventually pierce $7,800 and drop to the 2-year moving average at $7,680.
Bulls Push Bitcoin Price to a 2-Week High, is $9,700 Next?
gepubliceerd op Oct 10, 2019
by Cointele | gepubliceerd op Coinage
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