The price of Bitcoin has hit new records last week and jumped more than 11%, confirming a falling channel breakout and a bullish reversal on the weekly chart. The breakout opened the doors for a re-test of the October highs above $10,000.
For the next 24 hours, the main focus is set on $8,200 which is a level that has proved a tough nut to crack in the last few days. A strong rejection above $8,200 could also yield a temporary drop to sub $8,000 levels.
Bitcoin logged double-digit price gains last week and confirmed the reversal from a six-month downtrend. The top cryptocurrency by market cap gained 11.2% in the seven days to January 12, which is the biggest weekly gain since October.
The prices rallied by 16% in the third week of October and since then, the top cryptocurrency has managed to score gains in only three weeks. The altcoin news and updates also show that other coins were affected by the gains. During the break six months to December 31, the cryptocurrency only rose with double-digit gains two times. Further, Bitcoin suffered a lot of losses in 15 out of 27 weeks and in two weeks, it was ending roughly fiat.
Clearly, the bears were in big control during the second half of 2019. The prices fell from highs above $13,000 to $6,425 during this period and established a series of lower highs and lower lows on the weekly charts.
This downward trajectory ended with last week’s impressive 11% gains and the path of the least resistance now lies on the higher side. In the weekly charts, we can see that last week’s candle closed well above the upper edge of the bearish channel, confirming a new bullish breakout.
The pattern also indicated that the pullback from $13,800 has ended and the bull run from lows near $4,100 seen in the first week of April 2019 resumed. This rise also confirmed that the bearish-to-bullish trend change signaled by the hammer candle created in the third week of December.
With this breakout, the odds of Bitcoin repeating history and the Bitcoin news showing new yearly highs ahead of the May 2020 mining reward halving have strengthened as well. The halving will cut the amount of Bitcoin created every 10 minutes by half.
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