Above 200-day MA
BTC: Price: $9,320 | Market cap: $169 billion | 24-Hr Volume: $33 billion
Trend: Bullish Bitcoin convincingly crossed the 200-day price average on Tuesday, marking the first breakout above the widely-followed technical line since October. The average was breached with a positive "marubozu candle," which indicates the bullish sentiment is strong.
As a result, further gains toward $10,000 could be in the offing – more so, as the weekly chart studies are also biased bullish. For instance, the MACD histogram has crossed above zero, confirming a bearish-to-bullish trend change, while the relative strength index is on an upward trajectory and is reporting bullish conditions with an above-50 reading.
Its worth noting that the cryptocurrency is on track to post its biggest January gain since 2019. At press time, prices are up 30 percent on a month-to-date basis. The surge is in line with historical data showing the cryptocurrency hits a new market cycle top (the highest point from the preceding bear market low) in the calendar year of a miner reward halving, but before the event, as discussed earlier this month. Based on that historical pattern, a further rise to levels above the June 2019 $13,880 before the May 2020 halving (supply-cutting event) cannot be ruled out.
All in all, the path of least resistance is to the higher side, and pullbacks could be short-lived. That said, the case for a quick rise to $10,000 would weaken if prices drop below the 200-day average at 8,894 with strong volumes.
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