Bitcoin Price Digest Recent Rally, As Bulls Are in Control
Bitcoin price consolidation phase continues around the $9300 level. BTCUSD has trapped between 9200 and 9550 zone after the strong rally since the beginning of the year. Yesterday the bitcoin spiked to fresh 2020 highs but failed to hold the gains and retreated.
BTCUSD is 29.58% higher in 2020 in a strong January for all the cryptocurrencies. Ethereum is 0.49% lower at $188.74. While the Litecoin is 1.31% at $68.64.
Crypto traders hope for widespread adoption of digital currencies as the main factor fueling the 2020 rally. The introduction of options on bitcoin futures by the CME improves investors sentiment of approval of the digital assets by large institutional investors.
Bitcoin is 0.07% lower today at 9281 as bulls yesterday failed to hold above the upper boundary of the consolidating range as the spike that hit fresh yearly highs was short-lived. BTCUSD is well-positioned inside the uptrend channel that started since the beginning of the year and drove the bitcoin price higher. The bullish momentum is intact as long as the crypto pair is hovering inside the trend channel.
On the upside, first resistance will be met at $9,348 the daily top. Next technical resistance stands at 9620 yesterday’s session high. If we have a bullish breakout, BTCUSD might visit the upper boundary of the ascending price channel in the daily chart at $10,170.
In the likely event of a correction, the initial support for BTCUSD will be met at $9,200 the daily low. If bitcoin price breaks below that level, the next support stands at $8,868 the 200-day moving average. A convincing break below will attract more bears. The next support will be the 8,816 the lower boundary of the ascending channel.