- Bitcoin is poised for a reversal that could soon step above $9,000.
- BTC/USD bulls must defend the rising wedge pattern support to prevent a breakdown likely to test $8,000.
Bitcoin is still trading above the rising trendline in spite of the correction from the new 2019 high at $8,96318 (on Coinbase). Clearly the trend shows a digital asset in in the middle of a bull rally since the beginning of May. The largest asset by market capitalization upside is limited below $9,000 while the downside is supported initially at $8,400 with the second stronger support at $8,000.
BTC/USD 1-hour chart
Although BTC/USD is trading at $8,696, the first resistance level rests at $8,800 (current price congestion resistance). Consequently, the second resistance level is slightly above $9,000 at $9,140 (price congestion resistance zone). A third resistance for the leading pair on the market is $9,650 (resistance congestion zone).
Looking at the 4-hour chart, Bitcoin is poised for a reversal that could soon step above $9,000. Besides, a correction past the rising wedge pattern resistance will ignite more gains towards $10,000. On the flipside, if the bullish trend reverses and BTC/USD breaks below the wedge pattern support, Bitcoin is likely to breakdown and explore the levels towards the support at $8,000.
Technically, Bitcoin is prime for gains as it trades above the 200 Simple Moving Average (SMA). Moreover, the Relative Strength Index (RSI) is heading sharply upward after bouncing back up from 30.00 level. The MACD in the same 4-hour range has stayed above 0.0 line to show that the bulls still have the strength to form the next course for the trend despite the retracement from the new high.
Bitcoin Key Technical Indicators
RSI 1-hour: Correcting above the 50 average as bulls gain traction.
MACD 1-hour: Stays in the positive region to show Bitcoin is still in a bullish phase.
SMA 200: Supporting the price at $8,000 – bullish indicator