Bitcoin Bull Market Gains Steam, Breaks $9K for the First Time in 2020

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On Jan. 18, Bitcoin (BTC) price finally made a strong push through the resistance level at $9,000 and rallied to $9,194 before pulling back slightly. BTC price has reached its highest level since early November, hitting $9K for the first time in 2020. 

BTC USD daily chart. Source: TradingView

The upside move brought the price above the main trendline of the ascending triangle in the $9.1 to $9.2K zone (highlighted pink) to set a daily higher high and open the door for further gains to $9,600.

Cryptocurrency market weekly overview. Source: Coin360

Traders observing the 4-hour timeframe will notice that the price pulled right below the ascending triangle arm and this point could function as an area of resistance. 

BTC USD 4-hour chart. Source: TradingView

Bitcoin’s previous price action from Oct. 26 to Nov. 8, 2019, suggests that bulls will need to flip $9.1K from resistance to support in order to see a continuation to $9.2 to $9.5K. 

On Jan. 18, Cointelegraph contributor Michaël van de Poppe suggested that if Bitcoin price pushed above $9,000, “ The next resistance levels [to target] are $9,400 and $10,000.”

Van de Poppe also cautioned that “Bitcoin started to rally since $6,400, so the upwards continuation will be stopped at some point to consolidate.”

In the daily timeframe, Bitcoin price action remains bullish with the relative strength index (RSI) and moving average convergence divergence (MACD) both still in bullish zones. 

BTC USD MACD, RSI and Stoch daily chart. Source: TradingView

As shown on the daily chart, $9,132 has long been a support for Bitcoin price and if bulls can flip this point to support then traders will eye $9,600, $9,960 as the next targets. 

BTC USD daily chart. Source: TradingView

The price is also bullish on the shorter timeframes as the MACD crossing above the signal line and the histogram flipping green above 0. 

BTC USD MACD, RSI and Stoch 4-hour chart. Source: TradingView

Over the short term, traders should keep an eye on trading volume and the next couple of candles on the 4-hour timeframe to see if the price can again push above the ascending triangle trendline and through the highlighted zone at $9.1 to $9.2K. 

Crypto Total Market Cap chart. Source: Coin360

The overall cryptocurrency market cap now stands at just below $250 billion and Bitcoin’s dominance is 66.4%. Notable gainers among the top-10 altcoins were Ether (ETH) with a 4.70% gain, XRP at 5.94% and Stellar (XLM) with 7.05%.

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