- Bitcoin could test key resistance above $8,500 in the next day or two, having eked out the biggest single-day rise in five weeks on Monday.
- The daily chart indicators have turned bullish with Monday’s price rise.
- Acceptance below the 100-week moving average (MA) at $7,756 would revive the case for a drop to $7,200.
Bitcoin (BTC) logged the biggest single-day price gain in five weeks on Monday, opening doors for a stronger recovery rally to key resistance above $8,500.
The top cryptocurrency by market value bounced up from a historically strong 100-week MA support near $7,750 and closed (UTC) at $8,205 on Bitstamp, representing a 4.47 percent gain on the daily opening price of $7,863. That is the biggest single-day price rise since Sept. 2.
Back then, BTC had rallied by 6.3 percent, confirming a short-term bullish reversal. The breakout, however, ended up creating a bearish lower high near $10,950 on Sept. 6.
Monday’s price rise could be termed as a relief rally, as the cryptocurrency was looking oversold, having dropped by more than $2,000 in the last week of September. Further, there were signs of seller exhaustion below $7,800, as discussed yesterday.
Many observers believe the recovery rally could be extended further to resistances lined up above $8,500 and near $8,600. For instance, market analyst Josh Rager tweeted earlier today that bitcoin price could now run up to $8,500.