Bitcoin extends gains
|Bitcoin has managed to bounce back in the past few days after declining sharply. In some exchanges, it rose to the $10K hurdle before easing back a little on profit-taking. Recent price action has been somewhat bullish. As the one hour chart of CMA Bitcoin futures show, it has been putting in a series of higher highs and higher lows on the lower time frames. On the daily, it has shown willingness to hold above the 200-day average. We have seen some volume coming into Bitcoin as it traded around the 200-day average. The 1-hour volume weighted average price (VWAP) is now trending higher. Bitcoin has broken above a key short-term resistance zone in the $9000-$9250 range. This area has since turned into a bit of support. For as long as price holds above this area then the short-term bias would remain bullish. However, if it goes back below this $9000-$9250 range then one would have to strongly consider the bearish scenario given the recent declines on the higher time frames. The next area of resistance is between $9800 and $10100. This area was previously support. Further resistance comes in at $10850, followed by $11750.
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