After several days of dilly dallying, Bitcoin logged the biggest single-day price gain in five weeks on October 7th, opening doors for a stronger recovery rally to the key resistance level above $8,500. The October 7 price rise can be termed as a relief rally, as Bitcoin was looking oversold, having dropped by more than $2,000 in the last week of September. Further, there were signs of seller exhaustion below $7,800.
At the time of writing, the Bitcoin price is up by 0.14 per cent at $8,226.8. Now, it is possible that Bitcoin could test key resistance levels above $8,500 in the next day or two, having eked out the biggest single-day rise in five weeks on Monday.
Experts in the field are of the view that the recovery rally, which we are witnessing now, could be extended further to resistances lined up above $8,500 and near $8,600.
Josh Rager, a cryptocurrency expert, tweeted that the Bitcoin price could now run up to $8,500. He warned in another tweet that prices need to rise above $8,500 to invalidate bearish lower highs set up and confirmed a bullish reversal.
Rager believes that Bitcoin’s attempt to gain a foothold above the highest volume area in today’s range is very important. Thus, cryptocurrency has received a new level of support. The next resistance, according to technical analysis, will be the mark of $8,380, but the price can easily break through $8,500 and go even higher.
Further, experts opine that the probability of a sell-off to $7,200 has dropped with Monday’s 4.47 percent price rise and a bigger rally to $9,400 could be seen if resistance at $8,500 is convincingly breached. Bitcoin created a bullish outside bar candlestick pattern on Monday, which occurs when the day begins on a pessimistic note, but ends with optimism, engulfing preceding day’s high and low.
Meanwhile, CNBC crypto analyst Big Cheds has suggested that the Bitcoin price will rally higher. “There is support here from July 2018 as well as May 2019, so it is not unlikely that we will see a short-term bounce. In addition, there is a hidden bullish divergence with OBV’s lower low versus price, suggesting bullish continuation,” he said.
The $8,000 mark seems to be an important price point for crypto’s market leader, Bitcoin (BTC). Since its breakdown from $9,400, the digital asset has lost and regained the $8,000 level several times, sitting above $8,200 at this time. Much of the time, altcoins follow Bitcoin’s lead in terms of price, making the digital asset’s activity a strong indication of the current market state as a whole, he further said.