Bitcoin Momentum Stalls After Breaking Above $9,000 – Can The RSI Rise Above 50?
- Bitcoin witnessed a small 5% price rebound over the past 7-days of trading that allowed it to overcome resistance at $9,000 again.
- The cryptocurrency is still in danger of heading lower as the RSI stalls upon reaching the 50 level.
Bitcoin saw a small 5% price rebound over the past week of trading. It had been falling the previous week and managed to stabilize after reaching support at $8,460 (downside 1.618 Fibonacci Extension level).
This price rebound allowed it to climb higher as it broke above resistance at $8,978 and rose above $9,000 to reach the current trading level at $9,132. Bitcoin currently now holds a market cap valuation of around $167 billion and it is still up by a total of 33% from the 2020 price lows.
Bitcoin Price Analysis
BTC/USD – Daily CHART – SHORT TERM
Market Overview
Taking a look at the daily chart above, Bitcoin managed to increase higher after bouncing from the support at $8,672, provided by a .5 Fibonacci Retracement level. The rebound allowed Bitcoin to break above the $9,000 resistance level as it reached $9,132.
Short term prediction: NEUTRAL
Bitcoin is still considered as neutral and would need to break above $9,500 before being considered even slightly bullish in the short term. It would need to drop beneath the support at $8,672 to be considered as being in danger of turning bearish.
If the buyers push higher, the first level of resistance lies at $9,270 (bearish .382 Fib Retracement). Above this, resistance lies at $9,400 (1.272 Fib Extension), $9,500 (bearish .5 Fib Retracement), $9,676 (1.618 Fib Extension), and $9,741 (bearish .618 Fib Retracement).
On the other hand, if the sellers push lower, support lies at $9,000, $8,762, $8,461 (downside 1.618 Fib Extension), and $8,250.
Key Levels
Support:$9,000, $8,762, $8,559, $8,500, $8,420, $8,250, $8,200, $8,000.
Resistance: $8,979, $9,000, $9,100, $9,270, $9,506, $9,740, $9,975, $9,000, $9,270, $9,500.
The cryptocurrency is still in danger of heading lower as the RSI stalls upon reaching the 50 level.
Disclaimer
The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
Yaz is a cryptocurrency technical analyst and has been actively trading financial markets for over 7years, with 4 years of crypto experience. He is an Economics graduate who has taken a keen interest on the future potentials of blockchain in the financial industry. Aside from cryptocurrency and trading Yaz enjoys spending his time watching his favourite football team (Liverpool F.C.) compete as well as keeping up-to-date with the UFC. Follow him at @TcmYaz.
Published at Sat, 07 Mar 2020 10:54:29 +0000
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