Bitcoin has its sights firmly set on breaking into the $9,000 region over the weekend after rallying above the $8,830 level of resistance.
The world’s largest cryptocurrency is now 37% up since December 17 having experienced a 12% move to the upside since Monday.
The next two levels of resistance before the psychological level of $10,000 are at $9,050 and $9,325, which will most likely act as resting points if the rally continues into the weekend.
However, Bitcoin needs to close today’s daily candle above $8,830 to confirm the breakout. A slump from here would effectively indicate another rejection that will likely cause a corrective move to the downside.
Another bullish indicator for Bitcoin is that altcoins have started rallying against their respective BTC trading pairs. This suggests value may flow back into Bitcoin once traders take profits from their altcoin holdings, causing its price to increase.
If BTC is rejected from the $8,830 level, the next levels of support are at $8,600 and $8,450, with further levels beneath $8,000.
The newfound confidence in Bitcoin and cryptocurrencies in general has taken many by surprise as there has been no driving factor aside from this year’s upcoming halving.
The block rewards being slashed will mean it costs more for miners to mine one Bitcoin, therefore incentivising price to rise to ensure the industry stays profitable.
However, Litecoin’s price slumped dramatically following its own halving last summer, highlighting the uncertainty of the event.
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Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.