Bitcoin has risen by nearly $500 in the last twenty four hours, confirming a falling wedge breakout on the 4-hour chart, as noted earlier today. The digital currency could rise further to $9,100 this week, popular trader Wendy O tweeted earlier today.
Wendy O is expecting a pullback to $8,600 from the current price of $8,760. That makes sense as the 1H chart is showing a bearish divergence. Should prices drop deeper and establish a secure foothold below support at $8,530, the case for a rise to $9,100 would weaken.
However, prices are unlikely to see a sustained break below $8,530, as longer duration charts are looking bullish, especially, the weekly MACD has risen above zero for the first time in five months. The weekly chart also shows a falling channel breakout – a bullish reversal pattern.
$8,250 is crucial support – The Crypto Monk
Renowned analyst @thecryptomonk thinks bitcoin’s bullish bias will remain valid as long as prices are holding above $8,250.
As seen above, sellers failed to penetrate $8,250 on a 4H closing basis twice over the weekend, following which the bulls made a comeback, pushing prices higher to $8,800.
So, if prices establish a foothold below $8,250, chart-driven selling could gather pace, leading to a deeper losses to $8,000 and aborting the immediate bullish bias.