Holding Strong: Failed Price Breakdown a Boon for Bitcoin Bulls?

By Omkar Godbole

Bitcoin has witnessed decent two-way business in the last 24 hours.

A drop below $8,000 during the Asian day was quickly undone and the world’s largest cryptocurrency by market value once again approached record highs, hitting $8,333 this morning.

At press time, bitcoin is changing hands at $8,228, according to CoinDesk’s Bitcoin Price Index.

As per CoinMarketCap, the bitcoin-U.S. dollar (BTC/USD) exchange rate has appreciated by 1.13 percent in the last 24 hours. Meanwhile, the total trading volume in the last 24 hours was $5 billion, the highest since Nov. 16.

The price action analysis indicates the failed breakdown below $8,000 may be costly for the bears.

Failed breakdown: BTC witnessed a solid rebound from the upward sloping 50-MA and is back in the rising channel.
The relative strength index (RSI) holds above 50.00 (bullish territory).

The descending trend line seen on the chart above has been breached as well, suggesting there is scope for a rally.
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The charts suggest a rally to new all-time highs around $8,600 (rising channel ceiling) is possible. The 10-day moving average (MA) is sloping upwards, suggesting dips below the same could be short-lived. Currently, the 10-day MA stands at $7,949 levels.

However, multiple 4-hour closes below $7,900 levels would warrant caution on the part of the bulls. In such a case, a deeper pullback to sub-$7,600 could be seen.

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