As the weekly close approached, Bitcoin (BTC) price gained above $8,500 after spending the previous day trading in the $8,200 to $8,300 range. At the time of writing, bulls are attempting to push through the $8,500 to $8,650 resistance zone in order to inch toward a daily lower high at $8,800.
Earlier in the day Cointelegraph contributor Scott Melker spotted the bullish development on the hourly timeframe when he tweeted the following chart and said: “Local double bottom breakout. Bottom reversal pattern.”
Prior to tweeting about the developing double bottom breakout, Melker suggested that traders watch the $8,469 resistance on the 6-hour chart as pushing above this would be a significant development.
Market analyst Michaël van de Poppe also tweeted that Bitcoin breaking above $8,500 was a good sign but not as significant as the need for the cryptocurrency to push through the $8,575 to $8,600 resistance. Van de Poppe believes that the current price action could culminate with “a bearish retest and a range-bound continuation.”
Van de Poppe further suggests that traders watch to see if the price pulls back to the $8,500 support and he is curious to see how Bitcoin price performs over the next week if it can sustain above $8,500 to $8,600.
As mentioned in the previous analysis, Bitcoin price needed to push through the 50-day moving average and now that the price has moved above this point traders will look for t a close above the moving average. Bitcoin price is also now above the moving average of the Bollinger Band indicator and the daily relative strength index is in bullish territory with a reading of 58.
On the 6-hour chart, the moving average convergence divergence (MACD) has a bull cross and the histogram has flipped positive, showing a sharp increase in momentum. If Bitcoin price can break above $8,650 and flip $8,800 from resistance to support the price could rally to $9,100 which lines up with the upper arm of the Bollinger Band indicator.
The overall cryptocurrency market cap now stands at $237.1 billion and Bitcoin’s dominance rate is 65.8%. A handful of the top-10 altcoins also posted impressive gains with Bitcoin Cash (BCH) rallying 10.67%, Bitcoin SV (BSV) 5.32%, and XRP which gained 4.30%.