Bitcoin Eyes $9K After Biggest Single-Day Rise in a Month

By Omkar Godbole

• Bitcoin violated crucial resistance near $8,460 on Tuesday, strengthening the case for a rise to the 200-day average at $9,100.
• The pullback seen in the last 12 hours or so lacks volume support and could be short-lived.
• Acceptance under Tuesday's low of $8,100 would abort the short-term bullish bias. Indicators, however, are reporting strong bullish momentum, so a drop below $8,100 looks unlikely.
  
  
  

  
  

  Bitcoin jumped sharply on Tuesday, violating key resistance and opening the doors for a test of a widely followed technical line above $9,000.
  The number one cryptocurrency by market value added nearly $800 to its price and ended the day (UTC) with 8.74 percent gains – the biggest single-day gain since Dec. 15, according to  Bitcoin Price Index. 

  
  
  Back then, bitcoin had reversed higher from an eight-month low of $6,425 to score its first double-digit gain since Oct. 25. The big move from multi-month lows warned of an impending reversal of the six-month bearish period – a trend change that was confirmed with last week’s 11 percent price gain. 
  That bullish breakout has been bolstered by Tuesday’s move above $8,463 – passing the resistance of a lower high created on Jan. 8.

  
  
  As a result, the next major resistance – the 200-day moving average (MA) located at $9,100 – could soon come into play. 
  At press time, bitcoin is changing hands near $8,710, representing a 1.4 percent gain on a 24-hour basis. 
  While prices have pulled back from Tuesday’s high of $8,900, the technical charts suggest it's nothing more than a temporary correction. 

  
  

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