Bitcoin bulls rejoice, BTC/USD catapults to $6,000

• Bitcoin resumes strong growth during early Asian hours.

• BTC/USD is vulnerable to a short-term correction.

Bitcoin is moving fast towards $6,000 handle. The largest digital coin extended the recovery during Asian hours on Tuesday, gaining over 3% in just one hour. BTC/USD hit a new 2019 high at $5,963 before retracing towards $5,897 by the time of writing.

 

Looking technically, BTC/USD continues moving within an upside channel with the major barrier is now seen at psychological $6,000 strengthened by the channel resistance. Once it is cleared, the recovery may gain traction with the next focus on $6,500.

 

Meanwhile, considering an overbought state of the Relative Strength Index on the intraday charts, BTC/USD is vulnerable ot the short-term correction with the initial support seen at $5,700 (a confluence of SMA50 1-hour and the middle line of 1-hour Bollinger Band).

 

BTC/USD, 1-hour chart

Tanya Abrosimova

FXStreet

 

David