Bitcoin price pumps massively extending a falling triangle pattern breakout.
Bitcoin still has room for growth as the RSI heads towards the overbought region.
Bitcoin price alongside Ethereum pumped massively on Wednesday during the Asian hours. The rally failed to cause a reaction in other altcoins. However, over the past months, Ethereum has become heavily correlated with Bitcoin price actions to the extent that it ignores altcoin rallies.
As discussed on Wednesday volatility finally returned to the Bitcoin market after sinking to a two-year low. At first, Bitcoin took down the resistance levels at $9,200, $9,300 as well as $9,400. Unfortunately, due to increased selling activities, it became difficult to contain the gains above $9,400. Moreover, the barrier at $9,500 stayed in position and intact on Tuesday.
Consequently, the breakout on Wednesday gathered enough strength to penetrate the barrier at $9,500. Bitcoin bulls then extended the action towards $9,600. At the time of writing, the largest cryptocurrency is hovering at $9,538.
The 50-day Simple Moving Average (SMA) resistance is now in the rearview. Buyers are looking forward to tacking the barrier at $9,600 in preparation for the next phase of lift-off to $10,000.
Meanwhile, the technical picture clearly shows that bulls are in control. The Relative Strength Index (RSI) in the same daily range is inches away from entering the overbought region. This means that despite the spike printed, Bitcoin is not yet overbought and there is room for growth.
BTC/USD daily chart
Looking at the Moving Average Convergence Divergence (MACD) we can tell that bulls are willing to settle for consolidation at levels higher than $9,500. The indicator is currently horizontal at the midline. It is vital to watch the movements of the MACD as it is likely to signal the next direction for BTC price. If losses ensue, Bitcoin would seek refuge at $9,500, the 50-day SMA, $9,300 and $9,000.
Luke has had a long interest in financial technology, especially cryptocurrency and blockchain. With a Bachelors degree in Journalism and Media, Luke is dedicating his writing skills for the digital currency sphere.He can be contacted at firstname.lastname@example.org