Bitcoin [BTC] Ripping Past $9,400 Could Trigger A New Wave of Higher Highs

Bitcoin

Bitcoin (BTC) performance has been superb in the last trading week. The world’s most valuable digital asset is setting standards and literally anchoring the cryptocurrency market given its role.

In the last trading day, the coin is up 3%, pushing weekly gains to over 8%.

Because of this, BTC is up $1,200 in three days. Analysts now expect more if bulls reap past $9,400-500, the immediate resistance zone, in a move that will further feed the rally and improve investor confidence not only in BTC but in altcoins.

Bitcoin Bulls Reverse from a Key Fibonacci Reaction Point

At the time of going to press, BTC was changing hands at $9,300 and prices are steady following yesterday’s acceleration.

Bitcoin BTC Daily Chart for Jan 29
Bitcoin BTC Daily Chart for Jan 29 by TradingView

Notably, bulls are confident and the bounce from the 20-day Moving Average ensured that losses of the third week of January, the correction, have been reversed comprehensively. Prices also reversed from the 38.2% Fibonacci retracement level of the January 2020 trade range.

The reversal from this level hints of strong upward momentum and odds are, prices could easily soar into the $11,500–$12,000 zone.

Those are the tops of President Xi Jinping triggered pump of late October 2019 when the President asserted China’s ambition of being a world’s leader in blockchain and emerging technologies including AI.

Halving, Cautious Stock Market Investors Fanning BTC Momentum

The confidence in the market that’s reflected by a near parabolic rally can be attributed to upcoming events.

One of them is the halving scheduled for May 2020. Then there will be an emission shock, and block rewards will be reduced to 6.25 BTCs.

Analysts say this hasn’t been factored in and could explain the rise of BTC as market forces naturally search equilibrium.

Other explanations include the risk-averse nature of the global investors as central banks continue to ease.

Stock market investors are also not confident of the rally as revealed by the number of Puts to Calls ratio which is over 1.

This means there are more sellers than buyers a fact that could fan sellers and a probably crumble. In that case, BTC and other safe havens stand to benefit from capital flight.

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