Bitcoin busted through its long-term descending trend line on the 4-hour time frame to signal that a reversal from the long-term slide is due. The price also seems to have completed a quick retest but has yet to clear another hurdle.

The price is currently testing the area of interest at the $9,800 area of interest which held as strong support since July this year. A break above this and the spike up to the $10,000 mark could confirm that buyers have won the upper hand.

The 100 SMA is crossing above the 200 SMA to indicate that the path of least resistance is to the upside or that the climb is about to gain traction from here. Price is above both moving averages as confirmation of bullish pressure.

However, RSI is turning lower after recently hitting the overbought zone, indicating that sellers are just about to return. Stochastic is already on its way down so bitcoin price might follow suit and make another retest to the $9,000 area.

The big rally is being pinned on China as President Xi noted that the government will be investing heavily in blockchain. In particular, he said that the country should “seize the opportunity” of bitcoin’s blockchain technology, which many interpreted to mean that China would ease its restrictions on cryptocurrency.

This comes after a challenging week mired by Facebook CEO Zuckerberg’s testimony in Congress and fears of tighter regulation, not just on Libra, but on the rest of the cryptocurrency industry. It didn’t help that big backers like Visa and PayPal reportedly dropped out of the project, spreading some unease among institutional investors as well.

Bullish forecasts are revived, with some predicting that bitcoin could reach $100,000 in value by December 2021. Keep in mind that that the halving will push through early next year and that it would take a few months before the reduction in mining rewards has its impact on price.

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