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Bitcoin – BTCUSD A Break Above $8754 Could Start Another Leg Higher

bitcoin BTCUSD

Bitcoin – BTCUSD consolidation phase around 8600 continues after BTCUSD rejected at 9000 during the weekend. For now bitcoin has managed to rebound from the 8500 level several times the last trading sessions.

Meanwhile a new hashrate all-time high of 125 exohash per second reached during the weekend. The figure suggests that that miners continue to improve the network security and confirms that bitcoin mining is still profitable.

In a move that enhances the broader approval of cryptocurrencies the UK’s Revenue and Customs agency will invest up to $130,000 towards the development of a new “cryptoanalysis” tool. The new tool will help the tax authority to trace cryptocurrency transactions, which are stored anonymously on a blockchain.

Read our Best Trading Ideas for 2020.

Bitcoin – BTCUSD Price Analysis

Bitcoin rejection above $9000 mark cancelled the strong positive momentum and might open the way for a move to lower levels.

On the downside, initial support stands at $8,595 the daily low. If bitcoin breaks below, the next support will be met at $8,454 the low from January 19th. Bitcoin has managed to rebound from that level the previous week. More offers would emerge at $8,109 the low from January 14th.

On the upside, immediate resistance will be met at $8,683 the daily high. If bitcoin manages to break above might test the next hurdle at $8754 the high from yesterdays session. A new up trend might start if BTCUSD breaks above the 200-day moving average at $7975.