Bitcoin Has Erased Over 45% of 2019 Sell-Off in Just 7 Weeks
BTC price chart (Dec. 25 2019-Feb. 7 2020)
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- Bitcoin’s bullish momentum is staying strong and resistance at $10,000 could soon be put to test.
- A break higher would expose the October high of $10,350.
- The hourly chart shows $9,850 has emerged as resistance in the last 24 hours. Another rejection at the newfound hurdle could yield a minor pullback to $9,600.
Bitcoin is continuing to pile on the gains.
The number one cryptocurrency by market value rose to a three-month high of $9,859 during the U.S. trading hours on Thursday and was last seen trading at $9,801, according to CoinDesk’s Bitcoin Price Index.
With the surge to multi-month highs,
bitcoin has recovered a significant portion of the ground lost in the second
half of 2019.
Bitcoin’s bull move from the April 2019 low of $4,100 topped out at $13,880 at the end of June. The bears seized control in July and ended up pushing prices to below $7,000 by the end of November.
December, therefore, began on a negative note with prominent analysts calling for a deeper drop to $6,000 or below on miner selling of the digital asset.
The decline, however, was cut short
at the seven-month low of $6,425 on Dec. 18. Since then, the cryptocurrency has
risen sharply by more than $3,300.
The speed of the ascent has been impressive – nearly 46 percent of the decline from $13,880 to $6,425 seen in the 25 weeks to Dec. 18 has been reversed in just seven weeks.
With the bulls in control and momentum looking quite strong, the cryptocurrency could soon rise into five figures.
Daily chart
The daily chart looks constructive with the cryptocurrency printing bullish higher highs and higher lows with each passing week.
Confirming the uptrend are the ascending 5- and 10-day moving averages (MAs) and a bullish crossover of the 50- and 100-day MAs. The MACD histogram, meanwhile, is printing higher bars above the zero line, indicating a strengthening of bullish momentum.
Importantly, the market is showing no signs of bull fatigue. The 14-day relative strength index is yet to cross into overbought territory above 70 and the cryptocurrency continues to print solid green candles with small wicks, a sign there is no hesitation among buyers while pushing prices higher.
So, the odds appear stacked in favor of a rise to the October high of $10,350. Pullbacks, if any, could find take the support of the ascending 5- and 10-day MAs located at $9,526 and $9,445, respectively.
Hourly chart
Bitcoin has faced rejection near $9,850 two times in the last 24 hours. Another failure might see some buyers opting to take their profits, leading to a minor price pullback to $9,635 (horizontal support line). Acceptance below that level might bring in deeper losses toward $9,500.
Disclosure: The author does not currently hold any digital assets.
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