Today, Bitcoin is trading above the psychological $90,000 mark – its highest level in over ten days.
Following a severe drop of more than 30% from October’s highs, the market had been lacking positive momentum. Confidence was boosted by:
→ investment giant Vanguard allowing clients to purchase spot Bitcoin ETFs on its platform;
→ news from Strategy Inc (we covered MSTR shares yesterday), which holds around 650,000 bitcoins and confirmed it has no plans to sell them in “emergency mode,” avoiding a flood of supply that could further depress the market.
Technical Analysis of BTC/USD
Since the summer, Bitcoin has been moving within a descending channel (shown in red), with:
→ the 21 November low (A) marking the lower boundary of the channel;
→ yesterday’s breakout above the QL line (which divides the lower half into quarters) accelerating price growth.
The formation of lows A and B suggests bullish potential, as they:
→ resemble a “Cup with Handle” pattern;
→ indicate aggressive demand.
However, further upside may be constrained by the channel’s median. As shown by the black segments, this line previously acted as support, so traders should consider the possibility that it may now function as resistance.
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*Important: At FXOpen UK, Cryptocurrency trading via CFDs is only available to our Professional clients. They are not available for trading by Retail clients. To find out more information about how this may affect you, please get in touch with our team.
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