Bitcoin Rallies By $2K But Bulls Still Aren't Out of the Woods

A breakout, if confirmed, could be followed by a rise to or above the recent high of $13,880.

Bitcoin could fall back to $9,600 if prices fail to hold above $10,830 in the next 24 hours, validating the bearish crossover of the 5- and 10-day moving averages.

Bitcoin has risen sharply in the last 24 hours, but a key price hurdle must still be passed to confirm a bull revival.

The premier cryptocurrency market value was on the defensive in the early European trading hours on Tuesday, having breached support at $10,300 on the back of high volumes.

The price jumped to $10,700 following the breakout, as expected, and extended gains further to hit a high of $11,575 on Bitstamp earlier today.

It is still too early to call a retest of the recent high of $13,880, as the cryptocurrency is yet to invalidate the most basic of all bearish patterns - a lower high.

A high-volume break above the bearish lower high of $13,880 would confirm an end of the price pullback and open the doors to a retest of, and possibly a break above, the recent high of $13,880.

Further, sell volumes have been higher than buy volumes post-breakout - a trend that has been in place ever since bitcoin topped out at $13,800.

Price breakouts on the hourly and other shorter-duration charts often end up trapping the bulls on the wrong side of the market.

The candle's success rate is higher when it appears after a prolonged downtrend, which isn't the case here.