Bitcoin

This simple technical pattern could resend the $ 9,000 Bitcoin price

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Bitcoin declined sharply against the USD 10,000 resistance against the US dollar. BTC is currently correcting higher and it seems the bulls are likely to push the price back above $ 9,000 again.

  • Bitcoin found support above key pivot levels of $ 8,200 and $ 8,000.
  • A low is formed at $ 8,267 and the price is currently correcting higher.
  • The hourly chart of the BTC / USD pair (Kraken data feed) shows a short-term downward trend line with resistance close to USD 8,800.
  • It looks like an inverted head-and-shoulders pattern is forming with resistance close to $ 8,800.

Bitcoin could rise again

After a strong rally, the Bitcoin price was unable to stabilize above the USD 10,000 resistance against the US dollar. The BTC price started a nasty drop below the $ 9,000 support and the simple 100-hour moving average.

The bears were able to push the price below the $ 8,500 support, but found support above the key pivot levels of $ 8,200 and $ 8,000. A low is near the $ 8,267 level and the price is currently correcting higher.

There was a pause above the USD 8,500 resistance level. Bitcoin is now trading above the 23.6% fib retracement level of the downward move from the high of $ 10,078 to the low of $ 8,267. On a positive note, the $ 8,800 level is a major hurdle to further profits.

It looks like an inverted head-and-shoulders pattern is forming with resistance close to $ 8,800. More importantly, the hourly chart of the BTC / USD pair forms a short-term bearish trendline with resistance close to $ 8,800.

Bitcoin price

Bitcoin price

In the short term, there could be a slight dip to form the right near the $ 8,550 zone. To start a sustained upward trend, the price must eliminate the trendline resistance at $ 8,800.

The next major resistance is near the $ 9,100 and $ 9,150 levels. The 50% fib retracement level of the downward move from the high of $ 10,078 to the low of $ 8,267 could also pose a hurdle near $ 9,175 in the short term.

Downward continuation?

If bitcoin price does not remove the $ 8,800 resistance, it could resume falling below the $ 8,600 and $ 8,550 levels. The first major support is near the $ 8,200 level.

The next big support is waiting near the $ 8,000 level (as discussed in the weekly analysis). If there is a bearish closing price below $ 8,000, the price could trigger another significant drop towards $ 7,500.

Technical indicators:

Hourly MACD – The MACD is currently moving well in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is currently approaching 50.

Major support levels – $ 8,600, followed by $ 8,550.

Major resistance levels – $ 8,800, $ 9,000 and $ 9,175.

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