Bitcoin market update: BTC/USD in pursuit of $9,000 post key support defense

Bitcoin is aggressively hunting for the $9,000 level following the recent rejection slightly below the same level. The largest cryptocurrency had established key support in the last 24 hours, in turn, allowing the bulls to increase their entries in an attempt to push for gains before the week’s trading closes tomorrow.

BTC/USD currently changes hands at $8,724 after rising 0.7% on the day. It has formed an intraday high at $8,773.42. The trading commenced in a bearish mode as the price explored the levels close to $8,500. A reversal from this region has formed a higher low pattern supported by both the 50 Simple Moving Average (SMA) and the 100 SMA 15-minutes.

While the path of least resistance is to the higher side, buyers are to be alert for any retracement keeping in mind that Bitcoin has rallied over 60% in May alone and such explosive moves are usually characterized by pullbacks.

Bitcoin ballistic move on Sunday last week followed the breakout from a pennant pattern as seen on the chart. Due to the stalling below $9,000 Bitcoin formed a bullish flag pattern. Currently, a breakout above the pattern is confirming a bullish momentum that is headed for $9,000 in the near term. The pennant breakout last Sunday had already provided a gateway to $10,000 and the remaining move is to see Bitcoin rising above the resistance at $8,800 and $8,900.

BTC/USD 4-hour chart