Bitcoin was able to post a bullish reaction to its recent dip below $9,000, with its buyers sparking a rally that sent it as high as $9,300.
Although this rally has not confirmed any type of notable technical breakout, it has helped shift some of the benchmark cryptocurrency’s technical indicators into the favor of bulls.
One analyst is now noting that the crypto is flirting with posting a MACD bull cross.
This technical pattern – if confirmed during the imminent daily close – would be a significant development for bulls, and could trigger a fresh uptrend that allows that crypto to climb significantly higher.
The stock market may be the force that determines whether or not BTC can close around its current price levels, as it appears to be providing the crypto market with some upwards momentum due to its significant climb today.
Bitcoin Close to Posting MACD Bull Cross: Key Levels to Watch
At the time of writing, Bitcoin is trading up over 2% at its current price of $9,280.
The crypto has been hovering around this price level for the past several hours, with bulls garnering greater support in the time following its sharp rebound from the dip below $9,000 seen yesterday.
The rally seen immediately following this decline indicates that buyers do have some notable strength at the present moment.
$9,300 is a crucial level to watch in the near-term, as its reaction to the resistance here could set the tone for where it trends in the days and weeks ahead.
This also marks the upper boundary of the short-term trading range that Bitcoin has formed over the past week.
One analyst explained that a daily close above $9,240 could be all that is needed to propel BTC above this resistance and spark a short-term uptrend, as it would confirm a bullish MACD bull cross.
“Closing above the previous support now resistance would confirm a MACD bull cross. Waiting for a daily close, but success in doing so could lead to something exciting for the [bulls],” he noted.
Image Courtesy of Teddy. Chart via TradingView.
Stock Market Gains Could Help Drive Bitcoin Higher
The stock market has been able to catch some notable upwards momentum today, with all the benchmark indices closing the day up well over 1%.
Although Bitcoin’s correlation with the US stock market has degraded slightly in recent weeks, the general connection between the two markets persists.
This is likely to bolster BTC’s daily close today in the coming few hours.
The Chinese stock market also appears to be laying the groundwork for a fresh bull run, which could provide Bitcoin with a boost as the country’s investors build a larger appetite for risk.
Featured image from Shutterstock. Chart via TradingView.