Bitcoin is looking to break out higher, having weakened a bearish continuation signal produced Thursday – the cryptocurrency dived out of a sideways channel, creating room for a deeper drop to $8,000.
The downside momentum, however, ran out of steam near $8,200 earlier today and the subsequent bounce to $8,500 invalidated Thursday’s range breakdown.
At the time of writing, bitcoin is priced at $8,450 on major exchanges. A layer of significant resistance comes at $8,492, with a 4H close higher, confirming a falling wedge breakout – a bull reversal pattern – and opening the doors for.a challenge of the psychological hurdle at $9,000. A violation there would expose the recent high near $9,200.
However, if the upper trendline of the falling wedge continues to cap upside, the selling interest around bitcoin could gather traction, sending prices back to $8,200 – the level offers support earlier today.