On Wed Bitcoin (BTC) cost blasted through a series of key resistance levels as traders ponied upward and gear up their target on the $9K marking. According to data from Cointelegraph Markets and CoinMarketCap the BTC/USD pair has rallied approximately fourteen.5%, notching a $1,123 gain.

With the block advantage halving merely thirteen days away, bullish investors are hopeful that a push above $ix,000 will lead to a pre-halving price of $10,000. Permit's take a brief expect at the charts to encounter what Bitcoin is upwardly to.

Crypto market daily price chart. Source: Coin360

Today's $i,123 surge immune Bitcoin price to articulate a number of crucial levels of concern. Among them were the: resistance at $viii,000, the 61.% Fibonacci retracement, the 100 and 200-solar day moving average and expected resistance at $8,500.

The move above $8,000 was much needed as the yearly pin was cleared at $8,100 and the surge above $viii,500 will have some traders convinced that Bitcoin's market construction has shifted and the trend is now bullish.

BTC USDT daily chart. Source: TradingView

Afterward such a strong upside movement, many traders will be looking for the price to pull back to exam underlying support or even the 61.8% Fibonacci retracement. At the time of writing,the relative strength index is ascension closer to overbought territory on the daily timeframe and the Stoch RSI is already overbought.

Earlier in the day Cointelegraph contributor filbfilb said that at $8,700 the current rally is looking over-extended and the chart below suggests Bitcoin in need of a retest of underlying supports.

BTC USD daily chart. Source: TradingView

Some volition argue, and rightfully so, that these indicators can't fully be relied on when Bitcoin cost makes $1,000+ rallies on surging purchasing volume as the asset is known to keep pushing higher even when the RSI and MACD wink overbought. Thus, keeping a closer eye on shorter time frames similar the 60-min chart is wise every bit it volition exist easier to spot increases in sell volume and possible reversal patterns.

Bullish outlook

Bitcoin price has already set a higher-high in a higher place the March 8 high at $viii,915 and currently the toll rests on a high book VPVR node at $eight,800. While a retest of previous resistance levels beneath this cost should be expected, a bullish scenario would entail Bitcoin price finding back up at $viii,800.

For this to occur, buy book would need to carry on as information technology has washed for the majority of today and this would strengthen the possibility of an assault on the 71.8% Fib level at $ix,060. Doing so would open up the opportunity for traders to exploit a small volume gap on the VPVR and besides open the door for the price to ascend to $ix,200 resistance level.

From this signal Bitcoin is expected to meet some difficulty in the $nine,200 to $9,400 zone where at that place is another high book VPVR node.

A less bullish outlook

Disallowment spooky gifs and cryptic Bitcoin volition crash and fire-style tweets from the likes of Bitcoin whales like Joe007, it's non easy to imagine a short term bearish scenario for Bitcoin toll. Plain, annihilation can happen and the recent fifty% collapse in Bitcoin price on March xiii remains the best instance of how chop-chop the market can turn against investors.

A 15% gain is nothing to express joy about and vertical movements such as the one witnessed today slice through resistance levels only also don't build solid supports equally the normal phases of consolidation are bypassed.

Historically, the 61.viii% Fib level has been 1 of the most important for Bitcoin'south toll action as information technology often functions as a stiff resistance and a strong support depending on Bitcoin's marketplace structure.

As mentioned earlier, a retest of recent lows or resistance levels is normal behavior exhibited by assets beyond all markets after a rally and the Bitcoin daily chart shows that there is a VPVR book gap from $8,560 to $7,700.

If the price begins to look toppy and traders begin booking profits, momentum will tiresome, clever traders will open up brusk positions, and as selling volume begins to outpace purchasing volume an evental retest of $8K and/or the 61.8% Fib level at $7,927 is possible.

In the event that the price fails to bounce off the 61.8 Fib level, $7,700 and $7,450 are the expected levels of back up where traders will likely place bids. If the cost fails to hold at the $7,450 back up then there's a problem and traders will start screaming 'trend-modify'.

Investor sentiment improves as the halving approaches

Crypto Fright & Greed Index. Source: Alternative.me

Withal, today was a fantastic twenty-four hours for bullish traders and equally the halving approaches possibly at that place will be repeat performances. The Crypto Fear & Greed Alphabetize shows noticeable comeback equally the sentiment metric now reads 26.

While the index nonetheless shows investors are fearful about Bitcoin'south prospects, it's a large improvement from last week's "Farthermost Fear" reading and the metric is set to update 5 hours, meaning today's 15% rally may not be reflected in the electric current measurement.

The views and opinions expressed here are solely those of the author and do not necessarily reverberate the views of Cointelegraph. Every investment and trading motility involves risk. You should deport your own research when making a decision.