Resistance Ahead: Bitcoin Bulls Seek Move Above $8,500

A move above resistance at $8,500 would provide confirmation bitcoin's bear market has ended, the technical charts indicate.

Over the weekend, the cryptocurrency clocked a three-week high of $8,458 on Bitfinex, adding credence to the short-term bull reversal confirmed last Thursday.

Still, the job is only part done, as bitcoin has yet to violate the descending trendline established since Dec. 17.

As seen in the chart above, the descending trendline, representing a series of lower price highs over the last four months, is still intact.

A high volume break above the confluence of the trendline and the 50-day MA could be considered the final confirmation of the bearish-to-bullish trend change.

The weekly chart below indicates that bitcoin has established the ascending 50-MA as a strong support, meaning that only a close below that line would revive the bearish view.

Many traders/analysts are of the opinion that only a move above $11,700 would signal a long-term bull market reversal.

While that may be true, a convincing move above $8,500 could be considered as an advance indicator of an impending break above $11,700.

View A high volume break above $8,500 below the 10-day MA would abort short-term bullish view.

Only a break below the weekly 50-MA would revive the bearish outlook.