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Bitcoin extends rally

Bitcoin has risen further higher today, climbing for a time above $8350 – its best level since May 21.  As a result of the rally, BTC/USD has broken even more short-term resistance levels. This is an indication that the bulls are regaining control, at least in the short term. But whether or not we will see any 2007-style moves remains to be seen. However, the good news is that the technical picture is looking increasingly less bearish which could help to boost confidence of the would-be buyers, bringing in more buying pressure in the days to come.

Among the bullish technical indications that can be easily observed on the chart of BTC/USD are:

  • Break above two short-term bearish trend lines
  • Price being above the 50-day moving average
  • Short-term resistance areas at $6800 and in the $7500-$7800 range have been broken
  • Long-term support at $6000 held after several tests

Given the above points, if BTC/USD were to make a higher high now then things could get really interesting. The most recent swing high is still miles away around $9950, which means the bulls have some work to do. Still, with key resistances broken at around the $7500-$7800 range and also at $6800, there are now at least a couple of big levels that could support prices on any short-term pullback. But should Bitcoin falls back below $6800, then the bullish bias would end and we could see a subsequent breakdown below that long-term support at $6000.

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