Bitcoin saw a notable breakout today after being caught within a prolonged bout of sideways trading over the past several days and weeks, with today’s upwards movement bolstering the cryptocurrency’s market structure.
One prominent trader is now that he believes that the cryptocurrency is bound to see further upside due to it breaking above the upper boundary of a descending channel, although it is imperative that bulls continue pushing it higher in order to confirm this possibility.
Bitcoin Breaks Through a Key Technical Formation as Analysts Eye Further Upside
At the time of writing, Bitcoin is trading up over 4% at its current price of $9,100, which marks a notable climb from daily lows of $8,700 that were set yesterday while BTC found itself caught within an incredibly tight trading range.
Today’s upwards movement marked a break above the heavy resistance that was previously suppressing its price action, which does seem to suggest that the crypto could soon see some further upside.
It is also important to keep in mind that this rally also marked a break above the upper boundary of a descending channel that the crypto had been caught within for a few days, which could also provide it with some near-term bullishness.
Teddy, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that he is looking to long each of BTC’s upcoming dips due to the bullish break above this aforementioned descending channel.
“BTC – Price formed down channel – Broke upwards has pattern has bull bias – Reached 9150, previous support now resistance – Closed position – Shorting it? nah. Would much rather long a correction/retrace/pullback,” he explained.
– Price formed down channel ✅
– Broke upwards has pattern has bull bias ✅
– Reached 9150, previous support now resistance ✅
– Closed position ✅
Shorting it? nah.
Would much rather long a correction/retrace/pullback pic.twitter.com/g7Xx84w20L
— TEDDY (₿) (@TeddyCleps) March 5, 2020
The key level that analysts are now watching in the aftermath of Bitcoin’s recent rally is $9,500, as its reaction to the resistance that exists at this level could provide significant insight into where it will trend next.
Cold Blooded Shiller – another prominent crypto trader on Twitter – spoke about this level in a recent tweet, noting that everything he sees seems to confirm that this is the key level bulls need to target.
“I think they’ll be a tendency to short $BTC early, everything I can see points to $9.5k being the true test point. Early entries could help fuel the run. Any failure to hold the 8925 breakout would just signal the end here for me. Hold that and I think we continue the grind,” he noted.
I think they’ll be a tendency to short $BTC early, everything I can see points to $9.5k being the true test point. Early entries could help fuel the run.
Any failure to hold the 8925 breakout would just signal the end here for me.
Hold that and I think we continue the grind. pic.twitter.com/xzXlIxM03s
— Cold Blooded Shiller (@ColdBloodShill) March 5, 2020
If Bitcoin faces a strong rejection at this level, it could spell trouble for the state of its ongoing uptrend. A break above this level, however, could lead to significantly further upside.