Bitcoin’s bulls have been holding the cryptocurrency steady around $9,800, with its strong multi-day momentum making it look incredibly likely that BTC will soon see a swift break above its key near-term resistance at $10,000.
Importantly, BTC’s recent price action has allowed the crypto to form an incredibly bullish, albeit simple, technical pattern that has preceded major parabolic rallies in years past.
In order for this pattern to become valid, however, it is imperative that the cryptocurrency breaks above a key resistance level that lies directly in front of it, as a swift rejection here could spell trouble for what comes next.
Bitcoin Stabilizes Around $9,800 as Bulls Gear Up for Their Next Big Push
At the time of writing, Bitcoin is trading up marginally at its current price of $9,800, which marks only a slight climb from daily lows of under $9,700, and a minor rejection from highs of $9,840.
It does appear that the cryptocurrency is currently entering into a consolidation phase as bulls attempt to generate further strength in order to push BTC above the heavy resistance that exists between $9,800 and $10,000.
In the near-term, Teddy – a popular cryptocurrency analyst on Twitter – explained in a recent tweet that Bitcoin’s weekly chart is looking strong as bulls attempt to close it above the critical resistance at $10,000.
“BTC: Weekly making moves. Love how this is moving, currently outside of the resistance’s range and thus marking a potential Higher High. Candle will close in a few days, bulls you have one thing to do – pray that it stays like this,” he said while pointing to the below chart.
Weekly making moves 🏁
Love how this is moving, currently outside of the resistance’s range and thus marking a potential Higher High.
Candle will close in a few days, bulls you have one thing to do – pray that it stays like this. pic.twitter.com/hQRG1mZsFL
— TEDDY (₿) (@TeddyCleps) February 7, 2020
This Simple Technical Formation Suggests a Big BTC Rally is Imminent
Bitcoin may be on the cusp of flying past its resistance at $10,000, as it is currently forming a bullish technical formation that preceded the rally in 2019 that took BTC to highs of $13,800.
Big Chonis, another popular cryptocurrency analyst, pointed to an EMA bull cross and upper Bollinger Band test that BTC recently posted, highlighting the similarities to the pattern seen back in April of 2019.
“Bitcoin weekly chart update – Nice early follow through from 8/34 EMA bull cross, testing upper BB for the first time since July 2019,” he said while pointing to the below chart.
$BTC #Bitcoin weekly chart update – Nice early follow through from 8/34 EMA bull cross, testing upper BB for the first time since July 2019https://t.co/5ejlip73KN pic.twitter.com/WYeBQA334h
— Big Cheds (@BigCheds) February 7, 2020
If Bitcoin is able to break the upper boundary of the Bollinger Band that it is pushing against, then the crypto could soon see significantly further upside. A rejection here, however, could invalidate its bullish market structure and mean significantly further losses are imminent.
Featured image from Shutterstock.