First, you’ll be introduced with some major facts about the recent price recovery of the most known cryptocurrency, the Bitcoin, and then you will get to know the details surrounding this topic. Here is some important information regarding the rise of the Bitcoin:
- Just yesterday, the most famous cryptocurrency in the world, Bitcoin has made a bullish hammer candle, meaning that today’s UTC close was pivotal. Also, a close just above $10,380 will probably make some very strong buying pressure and will be essential for the rise to $11,000, which is fantastic.
- If Bitcoin doesn’t manage to hold above 10,000 in the following day, then it could likely fall to $9,600, which was the price from Thursday.
BTC’s remarkable $780 recovery after being at $9,600 for 18 days has surely neutralized the bearish setup. On the other hand, follow-through is a must to put the bulls back on track. Bitcoin, the number one cryptocurrency, currently, by market value, has picked up a bid which was approximately $9,600. That was the lowest level of the BTC since the 1st of September. That was on Thursday by the Asian Trading hours, and it has risen to the satisfying price of $10,380 in the trading hours of U.S.A. That swift recovery kept the bulls in action, as Bitcoin was looking quite fragile beneath the key support of $9,855.
The rise of the price from $9,600 to $10,380 formed a candlestick-like shape, also known as the „bullish hammer.” This pattern can be seen when an asset makes the large early drop disappear to the end of the day on a highly positive note at or somewhere close to the high of the current day. This Thursday, the price of Bitcoin has fallen in a significant manner to $9,600, only to rise to $10,380 before it printed a UTC close right around at $10,271. When a hammer is seen, then it is considered to be an early warning that a rally will happen soon. Nevertheless, traders have a tendency to wait for a quite strong follow-through before they make their bids on the cryptocurrency market. The follow-through should be a UTC close which is just above the high of the hammer candle.
Right now, the main focus happens to be on today’s UTC close. At the moment, Bitcoin is changing hands at around $10,140 on Bitstamp, and it has also made a $10,208 high just earlier today. Bitcoin has made a continuation pattern, the bull flag. If a breakout was to be confirmed, it would without a doubt mean that the rally from $9,600 will resume and it will make some space for a rally to $10,950. The chances that a Bitcoin is going to print an impressive close above $10,380 would rise in a situation where the flag will end up with a bullish breakout.
Although the close above $10,380 will mean a good thing for the BTC, a complete revival of the bull needs an upside break of a contracting triangle in a period of three months. The upper-triangle edge is at $10,822, while the lower edge is at $9,450. That lower edge could possibly go into play if BTC closes beneath the level of $10,000, as of today.