Bitcoin Price Analysis: Bulls Need a Convincing Close Above 200DMA

Bitcoin has had a great month so far. The most popular digital currency found buyers near $6,850 in the first week and recently printed highs near $9,200. 

What’s worth noting is that the cryptocurrency broke out of a six month bearish channel earlier this month, signaling an end of the downtrend seen in the second half of 2019 and indicating a continuation or revival of the price rise from the April 2019 low of $4,100. 

To cut the long story short, the bulls look to have regained control. However, the 200DMA resistance is yet to be scaled. 

That major resistance is currently stationed at $8,902 on Bitstamp.

D1 chart

The chart shows the digital currency bulls failed to establish a strong foothold above the 200DMA on Jan. 19. 

The 200DMA was scaled on October 26. The breakout, however, was followed by a sideways churn, which ended with a fall back below the major average on Nov. 8.

Back then, however, the digital currency was trapped in a bearish channel on the weekly chart, meaning the bears were controlling the market. 

Now, the bulls are in charge, as noted earlier. Hence, the cryptocurrency may succeed in producing a convincing close above the 200DMA. 

That would further strengthen bullish expectations, attracting stronger bids and possibly fueling a rise into the five figures. 

If today’s candle fails to close above the 200DMA, the bears could make their presence felt over the next few days, sending prices back to $8,530. A move below that level would put the spotlight on the psychological support of $8,200 and $8,000.