The move to $9,530 set a daily higher high for the third time this week and traders will note that purchasing volume is also rising higher each day which are all signs that the asset is in a strong bullish trend.
For the second time this week, Bitcoin bulls have protested against any attempts to push the digital asset below the $9K mark. Earlier today, the price dropped slightly below $9,200 but the pullback stopped right at the Jan. 19 high at $9,198 before reversing to surge higher on a high volume spike.
On the shorter time frame, one can see that the pullback to $9,194 led the price to touch the $9,190 support where the price had bounced twice before further continuation to $9,530 occurred.
The relative strength index (RSI) has popped into overbought territory on the 4-hour and daily timeframe and there is also a tweezer top on the 1-hour chart. This suggests that the price may pull back for a brief consolidation, but there also appears to be plenty of demand and support at $9,366. Furthermore, this week $9,200 has proven to be a decent level of support.
Bitcoin daily price chart.
Meanwhile, on the daily timeframe, the moving average convergence divergence (MACD) histogram shows increasing momentum and the signal line continues to rise, nearly reaching its previous Jan. 18 high at 400.
In the event that $9,200 gives way as support, the price could drop to the 200-daily moving average (DMA) at $8,900, a level that the volume profile visible range (VPVR) also shows as a point of interest to traders.
On the bullish side, if traders can hold the price above $9,500, the VPVR shows a volume gap from $9,418 to $10,166. If buyers step in to provide consistent volume, we could see the price rise to $10,166 over the short term.
The overall cryptocurrency market cap now stands at $261.1 billion and Bitcoin’s dominance rate is 66.1%. A handful of large-cap altcoins also mirrored Bitcoin’s gains. Most notably, Litecoin (LTC) rallied 12.96% and EOS is up by 6.44%. Tezos (XTZ) also posted an impressive 6.60% gain.