Bitcoin (BTC) is trimming gains, having set a six-day high above the $9,000 mark early Saturday, according to CoinDesk's Bitcon Price Index (BPI).
Still, it's the broader context that might be most important in understanding why these small gains might tell a bigger story – BTC has now rallied more than $2,300 from Tuesday's low below $6,000.
Meanwhile, other crypto market leaders have also witnessed solid gains in the last 24 hours. Ripple's XRP token has jumped 30 percent (this figure was as high as 50 percent) and was last seen changing hands at $1.10.
Meanwhile, cardano and neo are also in the green, while ethereum's ETH token is reporting a solid 5 percent appreciation.
- The retreat from $9,090 to $8,750 has established the Jan. 17 low of $9,017.41 as strong resistance (marked by a circle).
- Further, the descending trendline is intact.
- A daily close (as per UTC) above the trendline would confirm bearish-to-bullish trend change and could yield rally to $11,695 (Jan. 28 high). A violation there would expose resistance at $12,500 (Dec. 30 low).
- Bearish scenario: Rejection at trendline followed by a 4-hour close below $7,540 (Feb. 2 low) would shift attention to $5,873 (Feb. 6 low).
Disclosure: CoinDesk is a subsidiary of Digital Currency Group, which has an ownership stake in Coinbase and Ripple.
Markets image via Shutterstock
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.