BTC/USD can move fast, and we could be witnessing a breakout now underway to the $1,000 handle after the price overcame $920 resistance as the dollar sold off today. After a few weeks of dips and consolidation, could bitcoin be poised to make another run at the all-time highs? The first resistance again will come at the psychological $1,000 mark.
However, the new upward trendline which started to form again mid-January after the sell-off from the double top near the all-time highs at the beginning of the month suggests that a slow climb back to the highs around $1175 could be near.
This time a more steady give-and-take march upwards in price could see all-time highs broken around March or April which would put the bitcoin price on a more solid foundation compared to the parabolic high we saw to begin 2017. There is still quite a ways to go as the price is hovering around $960 at the moment.
Technically, the price fell from the $1170s high this month back to the 50% retracement line from last year’s lows in the $430s to around $785 where buyers could be found in this renewed uptrend. Should sentiment turn negative on bitcoin in the immediate future it seems likely that support will come in at the $700 handle, where the 38.2% retracement stands from the highs of $1170s this year to the lows of the $430s last year.
This retracement level would seem like a good re-entry point for those long-term holders of the digital currency should that be the case. Although the trend right now looks a bit exhausted either way and we are probably heading for a little more consolidation as February begins.
