- Bitcoin has retraced slightly from the one-year high of $8,940 reached earlier today.
- Any pullbacks could be short-lived, however, as buying pressure is currently the strongest in over five months, according to a weekly chart indicator.
- A pennant breakout on the daily chart indicates scope for a rally to $10,000 in the near-term. On the way higher, BTC may encounter resistance at the key Fibonacci level of $9,442.
- The bullish case would weaken if prices fall back below $8,000 in the next day or two.
Bitcoin (BTC) has pulled back from 12-month highs hit earlier today. However, the bulls are still firmly in control, with the price holding well above key support at $8,390.
The cryptocurrency market leader jumped to $8,940 on Bitstamp at 01:00 UTC today, the highest level since May 11, 2018.
The rally since then has faded somewhat, with the cryptocurrency currently trading at $8,750, representing a 9 percent gain on a 24-hour basis.
The $200 drop from intraday highs seen over the last nine hours is likely nothing more than a bull breather, often seen following a notable price gain. After all, BTC rose by 8.29 percent on Sunday – the fourth biggest single-day gain of May.
More importantly, the bulls finally managed to force a convincing break above $8,300, having failed at least three times in the preceding 11 days to hold on to gains above that psychological level.
Prices also found acceptance above the July 2018 high of $8,500 yesterday.
So, the rally from lows below $6,000 looks to have resumed and only a quick fall back below $8,000 would weaken the bullish case.