Bitcoin Price Backs Off 12 Month Highs, But Bias Remains Bullish

View Bitcoin has retraced slightly from the one-year high of $8,940 reached earlier today.

The bullish case would weaken if prices fall back below $8,000 in the next day or two.

Bitcoin has pulled back from 12-month highs hit earlier today.

The bulls are still firmly in control, with the price holding well above key support at $8,390.

The $200 drop from intraday highs seen over the last nine hours is likely nothing more than a bull breather, often seen following a notable price gain.

The rally from lows below $6,000 looks to have resumed and only a quick fall back below $8,000 would weaken the bullish case.

BTC closed well above the May 16 high of $8,390 on Sunday, confirming a pennant breakout - a continuation pattern that usually accelerates the preceding bullish move.

Supporting the bullish case is the Chaikin money flow index of 0.24 - the highest reading since April 10 - meaning that buying pressure is its strongest in nearly six weeks.

BTC's four-week winning run is backed by five-month highs on the Chaikin money flow index - that is, buying pressure is currently the strongest since mid-December,.

To conclude, BTC will likely break above $9,000 in the short-term and may rise to $9,442 - the 38.2 percent Fibonacci retracement of the sell-off from the December 2017 high to December 2017 low.