Traders Start Preparation For Another $9200 Run As BTC Prices Tighten

Bitcoin has enjoyed a strong performance these past two weeks, clocking in a rise in price from $7700 to about $9200. The first and still most used cryptocurrency appeared to have its traders try for another big push into the $9200 range.

First Failure

As the push happened, Bitcoin’s overall dominance took a slight drop, with many other forms of crypto rallying in the wake. A lot of crypto coins managed to make double-digit gains, many having tested or pushed passed the descending trendlines plaguing the crypto industry. The most notable of these would be the ETH/BTC trading pair, that pushed past its a long-running downtrend.

With the strong rejection that happened on the 18th of January at the $9200 mark, and following shortly after a drop in the ascending wedge pattern, traders started to switch sentiments to bearish. This caused a revisit within the $8000 range. The good news for bulls in this situation is that traders have more or less succeeded in defending the support zone at around $8470. The shorter timeframe charts are currently displaying that Bitcoin was trying to push above the moving average of the Bollinger Band indicator.

Slight Recovery

Since the 19th of January, the price has dropped and tested the $8475 range five times. Every time it did, though, the traders bought into the dip to defend the current support. This action suggests that traders within Bitcoin believe that another run towards the $9000 range is possible within the short term.

As it stands now, the price is doing what is expected of it, moving along the average of the Bollinger Band indicator. Furthermore, it still follows within the 40hour moving average convergence divergence (MACD). The Relative Strength Index (RDI) is holding suggestions that the bulls within Bitcoin will try to push the price of Bitcoin along the upper Bollinger Band arm. As it stands now, that region is located at the $8983 mark. This stands within the ascending trendline that BTC fell below during the pullback of the 18th of January.

A Promise Of Future Highs

Bitcoin’s trading volumes have started to die down. This is a typical occurrence that heralds a sudden shift in price. Another bullish signal stands with the MACD having converged with the 4-hour timeframe signal line.

Should a high volume spike indeed send the price of BTC hurtling into the $9000 range, the most optimal events that should unfold, is that BTC needs to push past the $9113 mark. Should Bitcoin hold that high for a 4-hour close, it would mean setting a daily high beyond the $9200 range. This would restore the momentum and sentiments within Bitcoin, promising a push into the $9600 region.