Following a few days of consolidation just above the 100-daily moving average, bitcoin jumped aggressively on Tuesday, to register mid-November highs just below $8,700. So, as a result of a daily surge by $500, the leading cryptocurrency by market capitalization climbed to two-month highs and now the question is if the prices manage to stay elevated and avoid some profit taking at attractive levels. Since the start of 2020, bitcoin is up more than 205 already. 
From the technical point of view, the token broke out a horizontal triangle around $8,200 in the hourly charts and accelerated the rally towards the above mentioned resistance. Now, bitcoin needs to show that a move above the $8,500 is sustained. Otherwise, the digital currency could correct lower towards the $8,000 figure.
The latest rally was due to a positive investor reaction to the launch of bitcoin options on futures contracts on CME Group. According to the exchange itself, the decision to introduce such contracts was due to growing investor demand. The market takes such news positively, as additional instruments help market participants to manage their risks more efficiently. 
Now, the question is if the cryptocurrency manages to see further gains and confirm a break above the $8,600 area on a daily basis. So far, it looks like BTCUSD is ready to preserve the bullish impetus and even extend the current gains. However, considering high trading volumes, traders may push the cryptocurrency to fresh two-month highs, with market focus now has been shifting towards the $9,000 handle, marginally above whish the 200-daily moving average lies. 
Now, the token is stuck between the 100- and 200-daily moving averages, and the probability of a rise towards the 200-DMA has grown substantially after the latest bull run. Should the BTCUSD pair finish the day above $8,500, we could expect further gains in the short term. at the same time, a better risk sentiment amid signing a deal between the US and China due tomorrow could cap bitcoin demand which has recently proved itself as a safe-haven asset along with gold. 


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.