After weeks of delayed reactions, Bitcoin finally caught up with a quick surge in the price charts. After dropping support below at $9149 and $9089 after the twitter hack news, the asset was unable to sustain a quick recovery. However, at the time of writing, Bitcoin’s price was once again high, in breach of key resistance at $9333.
Bitcoin had a market cap of $171 billion with a trading volume of $16.06 billion over the past 24-hours.
Bitcoin 1-hour chart
The breakout facilitating at the moment can be observed to manifest out of an ascending channel that took shape since the collapse on 16th July. The price maintained oscillation between the trendlines but after registering its third local top in the last 5-days, the price ascended above resistance at $9238, $9281, and finally, above long-term resistance at $9333.
BTC moved above the 50-day and 200-day moving average as well, which is a bullish sign but the asset may register a minor correction following its 2 percent hike. An immediate drop down to $9238 may take place but there is also a possibility of a bounce-back from $9281.
Bitcoin 4-hour chart
From a long-term perspective, the recent hike seemed all part of the long-term breakout for Bitcoin. As observed on Bitcoin’s 4-hour chart, the price touched the upper trend line of a symmetrical triangle but did not completely breach it. It further validates the imminent correction period which may eventually face another re-rest at $9149 as well.
Now, a breakout foreseen by the pattern may surface towards the end of July around the 28th and the breakout could place on either side of the spectrum. A bullish scenario would see Bitcoin breach above $9550 for the first time since June, whereas a bearish breakout may depreciate its valuation down to $8933.
Now according to market Indicators, MACD has remained bullish for the asset but Relative Strength Index or RSI may exhibit a worrying sign. BTC remained in the over-bought section at the time of press which meant that a drop in valuation is inevitable for the token. A massive collapse down to 45 could turn the coin in favor of bearish momentum, implying severe corrections over the long-term.
Considering, Bitcoin has been able to sustain a price above $9100 for the long-term, a massive break down is unlikely and the correction period should be minor over the next few days.