Pullback Over? Bitcoin Retakes $9K, Eyes Further Gains

Having recovered from a five-day low hit yesterday, bitcoin has potential for a move higher towards major resistance at $9,880, the technical charts indicate.

The cryptocurrency moved back above $9,000 in the Asian hours after the pullback from the recent high of $9,767 ran out of steam around the ascending 4-hour 50-candle moving average.

Had BTC closed yesterday below $8,765, the bears would have had the upper hand for the short-term.

The above chart also shows the 5-day MA and the 10-day MA are trending north, indicating a bullish setup.

The fact that bitcoin found takers below the 10-day MA yesterday and jumped above the 5-day MA only adds credence to the bullish nature of the moving averages.

Pullbacks tend to be short-lived as long as the short-term averages are trending north, unless there is a major negative fundamental news.

BTC bounced off the 50-candle MA yesterday, establishing it as a strong support.

The major moving averages - 50, 100, 200 - are trending north in favor of the bulls.

The pullback seems to have ended at $8,652, leaving bitcoin set to scale the resistance at $9,280 and rise towards the 200-day MA located at $9,878.

Bear scenario: A failure to take out $9,280 and a drop below the previous day's low of $8,652 would establish lower highs and lower lows pattern and would strengthen the case for a deeper pullback to $7,823.