Bitcoin climbs to $9,700; where will it go from here?

Bitcoin surged over 40 percent in the last few days after Chinese President Xi Jinping said that his administration would embrace blockchain technology.

Based on its 3-day chart, Bitcoin appears to be trading within a descending parallel channel that formed since Sept. 26 following the peak at $13,800.

At the current price level, Bitcoin could either break out of the descending parallel channel or pull back once again to continue consolidating within it.

This is considered a continuation pattern that formed after an upward movement that took Bitcoin to nearly $14,000, known as the flagpole, and was succeeded by the current consolidation period, known as the flag, which could result in a breakout on the same direction of the previous trend.

Bitcoin is facing a major resistance cluster on its 1-day chart given by the 100 and 150-day moving average.

At the moment, it seems like a move to $9,000 could actually be beneficial for Bitcoin's bullish trend.

This downward movement would fill a price gap that is currently open on the CME Group Bitcoin futures contracts chart.

The CME Group Bitcoin futures contracts are open from Sunday to Friday from 5:00 PM until 4:00 PM Central Time with a daily 60-minute break at 4:00 PM. During the most recent rally that saw Bitcoin rise more than 40 percent, a gap was left behind while CME's trading hours were closed.

The crypto community appears to have turned bullish after the recent price action that took Bitcoin to a high of $10,480 on Oct. 26.

Even though a downward movement could prolong the bullish outlook, it could allow BTC to fill a price gap that can be seen on the CME Group Bitcoin futures contracts chart.