Saturday, May 2, 2020

Bull Flag Breakout Brings Bitcoin Price to $9,200 — Altcoins Follow Suit

Bitcoin bulls recaptured the $9K mark for the second time in 24-hours and this time it looks like traders are targeting the $9.4-$9.6K zone.

Bitcoin (BTC) price has risen over the $9K mark for the second time in 24-hours. On Saturday the day bulls managed to push the price of the top listed crypto-asset on CoinMarketCap to $9,010 but the price quickly rejected at the top of the bull pennant and pulled back to the $8,800 support before making a successful second attempt at breaking out. 

Crypto market daily price chart

Crypto market daily price chart. Source: Coin360

The breakout brought the price to $9,200 and at the time of writing Bitcoin price has pulled back to the $9,100 level where traders are attempting to establish support. 

On the shorter timeframe traders will note that the breakout occurred on a slight spike in volume but purchasing volume has now returned to the levels seen earlier in the day. 

BTC USDT 4-hour chart

BTC USDT 4-hour chart. Source: TradingView

A few possibilities could play out over the next few hours: Bitcoin price could consolidate between $9,200 and the bull pennant trendline which is also aligned with a high volume node on the VPVR at $8,900.

Another more bullish outcome would entail Bitcoin price pushing through the resistance at $9,200 to exploit a small gap on the VPVR from $9,176-$9,486. 

A short-term bearish scenario would occur is the price pulled below the 20-MA and $8,685 as the price could then drop to $8,400. 

At the time of writing, a bullish outcome seem more likely as the MACD and RSI remain bullish on the 1 and 4-hour timeframe. 

Risk averse traders are likely to wait for a retest of the $8,800 support whereas more aggressive traders could consider buying a breakout above $9,200 and profit taking at $9,400 and $9,700. 

Bitcoin daily price chart

Bitcoin daily price chart. Source: Coin360

A handful of altcoins also rallied higher as Bitcoin rallied above $9,000. Ether (ETH) gained 2.34%, Litecoin (LTC) added 3.24%, Ethereum Classic (ETC) moved up by an impressive 11.59%.

According to CoinMarketCap, the overall cryptocurrency market cap now stands at $254.9 billion and Bitcoin’s dominance rate is 65.7%.

Keep track of top crypto markets in real time here


from Cointelegraph.com News https://ift.tt/2SwLbqG

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