Bitcoin (BTC) surged to a new 2020 all-time high of $9,439. It seems that bulls do not intend to leave the most valuable digital asset below the $9,000 level.
Earlier in the day, the Bitcoin fell below the $9,000 level, hitting $8,879. Thus, some observers called for a consolidation around $8,300 to $8,500.
While the possibility of a pullback among traders was the least desired scenario, it seems perfectly reasonable considering Bitcoin’s vigorous rally beginning from $8,200 earlier this week.
Analyst Michaël van de Poppe earlier stated that the digital asset often needs to retrace back to the support before resuming an uptrend, and this usually takes place after breaking the main overhead resistance.
The hourly chart shows that the increase in volumes pushed BTC to reach the $9,439 level, and the subsequent sell volume candle shows that the 3.4 percent move led some traders to sell, expecting that $9,500 would be staunch resistance.
The BTC has done a good job of breaking through strong resistance to a new support level, after working its way up from $6,400 on December 18, 2019.
Traders will wait to see if bulls push the cryptocurrency higher and flip the $9,400 level to support as this would help the coin to test $9,600 and $9,948.
If traders take profit and the BTC experiences a slight correction, we will see if the underlying support holds up at $9,100, $8,900, $8,650.
The upcoming halving is set to take place in May 2020, and this is considered a very important event in the history of Bitcoin. The halving is expected to boost the price of the world’s biggest cryptocurrency by May 2020.
Bitcoin investors are eagerly awaiting this event which would push the Bitcoin higher to hit an all-time high like 2017.
The halving, which is expected to take place in May this year, could change the price of Bitcoin forever. This event has already taken place twice before.