Bitcoin Bulls Seek Breakout to $10K or Higher

Bitcoin has been trading in a narrowing price range over the past week, but a bullish breakout is looking likely, the technical charts suggest.

The cryptocurrency created a bearish outside-day candle last Wednesday, signaling the rally from the low of $6,425 had run out of steam.

The bitcoin bulls ensured there was no negative follow-through on Thursday and defended $8,800 over the weekend.

While a convincing break above $9,500 has remained elusive so far, the charts suggest the bulls have the stronger hand going forward.

The chart above shows that bitcoin is trading in a narrowing price range with higher lows and lower highs, forming a bull pennant pattern.

A bullish breakout would mean the rally from the low of $6,425 has resumed and could open the doors to $12,000.

This is evident from the lack of bearish follow-through on Thursday and higher lows pattern - $8,652, $8,750 and $8,818.

Further, the gradually ascending 5-day moving average and 10-day MA continue to favor the bulls.

View Bitcoin will likely witness a bull-pennant breakout and rise towards $9,975 and $10,000.

A downside break of the pennant pattern would weaken the bulls and expose support lined up at $8,490 and $8,104.