Bitcoin continued its barnstorming rally to the upside last night, surging to beyond $9,000 after taking out the $8,830 level of resistance with consummate ease.
The breakout also coincided with a daily candle close above the 200 exponential moving average (EMA), which Bitcoin has not traded above since November 7.
There was also significant volume to demonstrate the strength of the rally, which could tie in with the upcoming Bitcoin halving event.
Block rewards for Bitcoin miners will be slashed to 6.25 BTC per block later this year, with analysts suggesting that the mining industry will be incentivised to drive price to the upside in order for it to stay profitable.
The two previous halving events in 2012 and 2016 preceded a series of bull markets that saw Bitcoin rise to all-time highs within a year.
However, for Bitcoin to repeat the feat this year, there are a number of key hurdles it needs to clear first.
Notably, the psychological $10,000 level of resistance will likely pose a stern test. A strong bullish indicator would be if Bitcoin can form a new higher high above $10,300 to break the cycle of four consecutive lower highs.
A higher high would be a clear demonstration of a bullish reversal, confirming December’s low of $6,400 was the bottom of 2019’s bearish phase in the market.
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