The buying interest around bitcoin gathered traction in the overnight trade, sending the top cryptocurrency to $9,150, the highest level since January 19.
At the time of writing, bitcoin is trading at $9,100 – up 4.5% on a 24-hour basis.
Bitcoin’s previous break above $9,100 was short-lived. The cryptocurrency hit a high of $9,188 on Jan 19 and reversed sharply lower on the same day to a hit a low of $8,460. The decline was extended further to $8,200 last week.
The latest move looks sustainable with a weekly chart indicator signaling bullish reversal for the first time since August.
However, the rally is looking overstretched on smaller duration timeframes. Hence, prices may revisit the 200DMA support at $9,000. If that support holds, a bigger bounce to $9,400-$9,500 will likely unfold.
However, if prices fail to establish a secure foothold above $9,000, buyers may feel demoralized and exit the market, allowing sellers to push prices down to $8,530. If the bulls fail to absorb the selling pressure at that level, bitcoin may end up falling all the way down to $8,000.