Bitcoin is currently priced at $8,560 on major exchanges – up 2.6% on a 24-hour basis.
The cryptocurrency broke higher from a falling wedge pattern earlier Sunday, signaling an end of the correction from $9,200 and the resumption of the rally from $6,850 (January 3 low).
The pent up pressure in a low-volatility environment (pullback) is released following a wedge breakout. As a result, the breakout of the wedge often results in a powerful to the higher side.
The digital currency has already risen by $200 since confirming a breakout earlier today and could challenge the resistance range of $8,750-$8,800, above which the focus would shift to the 200DMA at $9,000.
The 4H chart also shows a double bottom breakout – Bitcoin is trading well above the neckline resistance of $8,516. The breakout would be confirmed if the current 4H candle closes above $8,516.
The upside bias would weaken if prices fall back to $8,400 in the next couple of hours. The bearish case would be revived if prices secure a foothold below a crucial Fibonacci support at $8,296.