Bitcoin recently soared to higher levels compared to the ones traded at the beginning of the year. The price cleared several barriers including $8,900. However, the momentum lost its mojo before testing the resistance at $9,000. The correction that followed saw Bitcoin dive towards $8,500. Fortunately, immense buying pressure emanated from the support at $8,570 – $8,600 revived the bullish interest in the largest cryptocurrency by market capitalization.
The bullish momentum has already pushed XBT/USD above $8,800 and if it continues, Bitcoin is likely to return above $8,900. As far as technical levels are concerned, Bitcoin is back into the bullish phase experienced last week. The Relative Strength Index (RSI) is currently moving towards the overbought region. The upward motion is reminiscent of the ongoing recovery and cements the bulls’ position on the market.
Bitcoin bulls must break the resistance at $8,900 and focus on the levels above $9,000 to avoid another reversal. The failure to establish higher support, preferably above $8,900, will give Bitcoin bears a chance to revenge the battering they have endured this week.
As far as support is concerned, initial support is placed at $8,600 – $8,570. The zone at $8,400 – $8,400 is also standing out vital support. Meanwhile, the 50 SMA on the 4-hour chart will also cushion Bitcoin against the probable drop. The last resort to shield Bitcoin from making a return into the $7,000 zone is the 61.8% Fibonacci level.
Bitcoin Key Levels:
BitMEX index price: $8,789
24-hour volume: $2.2 billion
Open interest: $878 million
Percentage change: 95
Relative change: 1.09%
Resistance: $8,900 and $9,000
Support $8,570 – $8,600 and $8,400 – $8,500.
Image from TradingView
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