The upside move brought the price above the main trendline of the ascending triangle in the $9.1 to $9.2K zone (highlighted pink) to set a daily higher high and open the door for further gains to $9,600.
On Jan. 18, Bitcoin price finally made a strong push through the resistance level at $9,000 and rallied to $9,194 before pulling back slightly. BTC price has reached its highest level since early November, hitting $9K for the first time in 2020.
Traders observing the 4-hour timeframe will notice that the price pulled right below the ascending triangle arm and this point could function as an area of resistance.
Bitcoin’s previous price action from Oct. 26 to Nov. 8, 2019, suggests that bulls will need to flip $9.1K from resistance to support in order to see a continuation to $9.2 to $9.5K.
On Jan. 18, Cointelegraph contributor Michaël van de Poppe suggested that if Bitcoin price pushed above $9,000, “ The next resistance levels to target are $9,400 and $10,000.”
Van de Poppe also cautioned that “Bitcoin started to rally since $6,400, so the upwards continuation will be stopped at some point to consolidate.”
In the daily timeframe, Bitcoin price action remains bullish with the relative strength index (RSI) and moving average convergence divergence (MACD) both still in bullish zones.
As shown on the daily chart, $9,132 has long been a support for Bitcoin price and if bulls can flip this point to support then traders will eye $9,600, $9,960 as the next targets.
The price is also bullish on the shorter timeframes as the MACD crossing above the signal line and the histogram flipping green above 0.
Over the short term, traders should keep an eye on trading volume and the next couple of candles on the 4-hour timeframe to see if the price can again push above the ascending triangle trendline and through the highlighted zone at $9.1 to $9.2K.
The overall cryptocurrency market cap now stands at just below $250 billion and Bitcoin’s dominance is 66.4%. Notable gainers among the top-10 altcoins were Ether (ETH) with a 4.70% gain, XRP at 5.94% and Stellar (XLM) with 7.05%.