Bitcoin's bulls have now propelled the cryptocurrency to the upper boundary of a strong multi-month channel, and they appear to be showing some signs of faltering as BTC struggles to break past this level.
Bitcoin rallies as bulls attempt to hold price above $8,750.
Currently, Bitcoin is trading up over 7 percent at its current price of $8,740, which marks a massive climb from its daily lows of $8,100, around where the cryptocurrency consolidated at for several days following its rally to highs of $8,400.
It is important to note that this recent BTC rally has come about in tandem with massive gains seen by major altcoins, signaling that fresh capital is entering the markets, rather than funds being shifted from altcoins to Bitcoin.
A few of the biggest winners within the crypto markets today are Bitcoin SV, Bitcoin Cash, and EOS, which are trading up 90 percent, 23 percent, and 22 percent respectively.
In order for the momentum seen across the aggregated crypto market to extend significantly further, it is imperative that Bitcoin closes the day above $8,750, as Josh Rager - a well-respected cryptocurrency analyst - explained in a tweet that a daily close above this level could mean a visit to $9,100 is imminent.
Will this key trendline halt the ongoing BTC rally?
Scott Melker, a popular cryptocurrency analyst on Twitter, spoke about this trendline in a recent tweet, noting that he is taking some profits off the table due to the strong resistance at this level.
"I am taking some money off the table on my $BTC long from $7,700. I think it's likely to consolidate and continue up, but this has been another epic trade and price is at a key resistance on multiple time frames. Never a bad idea to pay yourself," he noted.
If bulls are able to sustain this momentum, the recent lows experienced by Bitcoin and the aggregated crypto markets could mark a long-term bottom, but a failure to close above $8,750 could mean significant losses are imminent.
This key resistance level could spark a massive Bitcoin selloff
Published on Jan 14, 2020
by Cryptoslate | Published on Coinage
Coinage
Mentioned in this article
Recent News
View All
Another mainstream company is seeking approval to invest in crypto
Anthony Scaramucci's investment firm, SkyBridge, seeks approval from the SEC to invest in crypto.
COVID-19 popularized decentralization, but blockchain may not catch on
On Nov. 9, drugmaker Pfizer announced that its COVID-19 vaccine is 90-plus percent effective, and even though it may be premature to proclaim the pandemic's end - as the virus continues to rage in the United States and Europe - once can at least speculate: Where will blockchain adoption stand when the crisis abates?
Bitcoin hits new 2020 high at $16.7K -Traders expect bigger breakout
The price of Bitcoin hit a new yearly high at $16,717 on Binance.
The next big crypto market could be fantasy sports, says Messari
As "Digitally native" ecosystems like esports continue to synergize with blockchain technology, industries like fantasy sports could be primed for mass adoption, says digital research firm Messari.