This Indicator Just Signaled Buy For Bitcoin, Setting Up Rebound to $9k

Aayush Jindal

1 year ago

2 mins read

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Bitcoin is correcting losses from the $8,400 region against the US Dollar. It seems like BTC price is likely to extend its recovery above the $9,000 in the coming sessions.

Bitcoin is up more than 2% and it recovered above the $8,800 resistance against the US Dollar.
The price is now testing the last swing high and a short term resistance near the $8,970 level.
There was a break above a contracting triangle with resistance near $8,610 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair is likely to accelerate its rise above the $8,970 and $9,000 resistance levels.

Bitcoin Gaining Traction

After forming a short term bottom near the $8,400 area, bitcoin started a decent recovery against the US Dollar. BTC price surpassed a couple of key hurdles near $8,600, $8,620, 100 SMA to enter a positive zone.

The recovery wave was initiated after there was a break above a contracting triangle with resistance near $8,610 on the hourly chart of the BTC/USD pair. The pair gained traction and settled above $8,700 and the 100 hourly simple moving average.

Bitcoin is up more than 2% and it recently tested the $8,970 swing high and a short term resistance. A high is formed near $8,967 and the price is currently correcting lower.

It is testing the 23.6% Fib retracement level of the recent recovery from the $8,397 low to $8,961 high. If there are more losses, the price could test the $8,700 support area and the 100 hourly simple moving average.

More importantly, the 50% Fib retracement level of the recent recovery from the $8,397 low to $8,961 high is near the $8,680 level to provide support.

On the upside, the $8,970 and $9,000 levels are key hurdles for the bulls. A successful break above the $9,000 resistance area is likely to set the pace for more upsides towards the $9,200 resistance area.

$9,000 as Key Hurdle

The $9,000 resistance area could play a major role in the next 2-3 sessions. If bitcoin fails to climb above $8,970 and $9,000, there is a risk of a fresh decline.

The main support is near the $8,680 level, below which there is a risk of a sharp drop towards the $8,400 region. Any further losses may perhaps lead the price towards the crucial $8,200 support area.

Technical indicators:

Hourly MACD – The MACD is now moving back in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is correcting lower towards the 50 level.

Major Support Levels – $8,680 followed by $8,400.

Major Resistance Levels – $8,970, $9,000 and $9,200.

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
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