Bitcoin Prepares For Another Push Higher

Last week, the Bitcoin price action moved briefly below the $8,450 horizontal support, just to get back above it yesterday again. Similarly to Ethereum, Bitcoin has moved lower to get more bulls onboard, as the zone in the low $8,000s offers a good entry. The renewed push higher started yesterday, as the bulls stage another assault on the 200-DMA at $8,900. This level is just the first one in line of numerous obstacles for the bulls, located in the $8,900 - $9,400 area.

Many analysts, including Tim Enneking, managing director of Digital Capital Management, believe that Bitcoin can bounce bank in the long term.

“The downward corridor of the past six months has been pretty solidly broken to the upside,” he said.

If this is the route for Bitcoin to take in 2020, the bulls will have to clear the key resistance around the $9,000 mark first. The second layer of resistance is located around the $10,000 mark, where the 61.8% Fibonacci retracement sits. On the downside, there is a strong confluence of support around $7,900, consisting of 100-DMA and the broken channel/wedge resistance.