Bitcoin’s January surge has put the bulls within the driver’s seat, opening the doors for a continued rally into five figures.
A minor pullback to $9,000 might be seen within the next 24 hours approximately , with intraday indicators are flashing bearish signals.
The overall bull bias will remain intact as long as prices are holding above recent lows near $8,200.
Bitcoin is holding its bullish trend while heading into the historically strong month of February.
The top cryptocurrency picked up a bid below $7,000 on Jan. 3 and has been on an upward trajectory ever since, rising to three-month highs near $9,570 on Thursday, consistent with CoinDesk’s Bitcoin price level .
At the present price of $9,350, bitcoin is up 30 percent on a month-to-date basis – its best January performance since 2013.
Additionally, the cryptocurrency is on target to register a double-digit monthly gain for the primary time since June 2019, when prices had rallied by 26 percent. January’s 30 percent rally is its best monthly performance since May 2019.
This month’s rally marks a pointy reversal higher from a six-month downturn when prices collapsed from $13,880 to $6,425. With the bulls still leading the worth action, February may again end up to be an honest month for the cryptocurrency.
Bitcoin has eked out gains in February for the last five years.
February saw losses in only two of the last eight years.
The popular narrative for February’s good record is Chinese investors tend to liquidate their crypto holdings before the New Year holiday in January and reinvest in February, causing prices to rise.
This time, however, the supposed post-holiday reinvestments could also be delayed thanks to coronavirus outbreak, resulting in a weakening of the bullish momentum.
That said, the bitcoin market is currently showing no signs of bull fatigue. “It’s difficult to possess a bearish argument,” popular trader and analyst @filbfilb tweeted on Thursday.
The analyst is drawing attention to the monthly chart, where the MACD histogram has crossed above zero, confirming a bearish-to-bullish trend change.
The bullish bias will strengthen if prices print a monthly close (Friday, UTC) above $9,158, establishing a better high.
The shorter duration charts also are reporting a robust bullish bias.
Bitcoin has broken out of a falling channel, indicating a resumption of the rally from lows near $4,100 observed in early April 2019.
The breakout is backed by bullish readings on both the MACD histogram and therefore the relative strength index.
The weekly chart is aligned in favor of a rally toward $10,350 (October high).
While the daily candle is red, the losses could also be reversed later today because the odds are stacked in favor of the bulls.
Bitcoin defended the previous resistance-turned-support of $9,188 on Thursday with a bullish engulfing candle. That solidified the preceding day’s breakout above that level and signaled a continuation of the rally from $8,213 (Jan. 24 low).
Momentum remains strong, as suggested by the ascending five- and 10-day averages.
The cryptocurrency could test and possibly break above resistance at $9,586 (Nov. 4 high) and rise toward $10,000 over subsequent few days.
The RSI has produced lower highs or bearish divergence on the four-hour chart. As a result, a fast pullback to $9,000 can’t be ruled out before the enter five figures suggested by the daily and weekly charts.
The bias will remain bullish as long as prices are holding above $8,213. the chances of bitcoin falling all the way back to levels below $8,000 are quite low, consistent with renowned analyst Josh Rager.
Disclosure: The author doesn’t currently hold any digital assets.