Bitcoin (BTC) has struck an all-time high mark of $9,000 on Jan. 17, with both local and global records being thrown out of the window as indicated by technical metrics. After a bullish run overnight, BTC/USD finally touched and crossed the $9,000 barrier on Friday. The 24-hour returns were recorded at 3% and weekly gains were recorded at almost 16%. Amazingly, Bitcoin holders have gained a whopping 35% in the previous month alone. But, after touching the $9000 psychological support, Bitcoin lost a couple of point percentages and is now hovering between a narrow range of $8600-$8800 for some time.
After an overall bullish run, BTC value at the next market close will be crucial in determining the short-term trajectory, especially for regular Cointelegraph contributors like filbfilb. It is often seen that a narrow trading window results in a violent breakout in either direction. Because of the current bullish setup, it is more likely that the upsurge will be witnessed rather than another price tank.
In essence, if BTC/USD closes somewhere below the bullish candle responsible for taking it to current highs, the market could witness a bearish reversal of the value. The BTC value would then follow a swing failure pattern, or SFP, keeping the pair lower.
One commentator summarized the situation: “When price pierces above a key swing high but then closes back below that swing high, we have a potential bearish SFP.”
Furthermore, the 200-day moving average, which has been a major resistance in the last two years, is also valued in the region of low $9Ks. Therefore it will likely create a critical barrier for the bulls to make a run-up to $10,000.
Nevertheless, Bitcoin has been showing multiple promising signs that would have certainly caught the eye of investors. For instance, hash rate, which is a measure of computing power for Bitcoin blockchain validation, also broke records on Thursday, with the market clocking 149 quintillion hashes per second. The hash rate continues to grow at an astonishing pace despite the looming bitcoin halving around the horizon.
The term ‘Bitcoin’ itself saw an all-time high surge in worldwide searches as revealed by recent data from Google Trends for October last year. So, according to many indicators, the bearish setup is now over and the currency is likely in a prolonged bullish market for now.
image source: pixabay.com
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