With multiple breakouts on 4H chart, bitcoin’s correction looks to have ended. The cryptocurrency’s drop from $9,200 had produced a falling wedge on the 4H chart.
The digital currency attempted a breakout on Friday, but faced rejection above $8,500 and revisited $8,300 before bouncing back over the weekend.
The falling wedge was breached on the higher side during Sunday’s Asian session, signaling an end of the pullback and a revival of the rally from lows near $6,850.
The bullish case further strengthened with prices rising above $8,530 in the American session yesterday, confirming a double bottom breakout.
The reversal higher has opened the doors for $8,750-$8,800 resistance range, which if breached, would shift the focus to the 200DMA of $9,000.
So far, the cryptocurrency has struggled to produce sustainable gains above $8,600.
Bitcoin is currently priced at $8,600 on major exchanges. The bearish divergence of the 1H chart RSI suggests scope for a drop to support of $8,530 (former resistance).
A strong bounce from that level would cement bullish expectations and may yield a quick move to $8,800. On the flip side, if the support is turned into resistance, sellers may challenge $8,300.