Bitcoin broke hard in the second half of 2019, falling from $13,800 to $6,400. The break was violent and had created room for a slide to levels under $6,000.
The sellers, however, could not penetrate the support of a major trendline rising from lows printed in January 2015 and February 2019 lows.
The trendline applied brakes to the price sell-off in December, offering relief to the battered bulls. Sellers again challenged the crucial support in early January, but failed, allowing the bulls to make their presence felt.
The digital currency bounced up sharply from the trendline support in the first week of January and ended the month with 30% gains.
The bounce marked an end of the preceding downtrend and a revival of the uptrend from the December 2018 low of $3,128.
What matters now is the follow-through. The cryptocurrency needs to secure a strong foothold above the January high of $9,575. That would cement bullish expectations, opening the doors for a stronger upward move toward $10,540 (October 2019 high).
On the downside, the spotlight is on the trendline support placed at $7,810 at the time of writing. Bitcoin will likely sink to December 2018 lows if that ascending trendline support is breached.