- Bitcoin stalls under $9,500 but it is well supported at $9,000 and $8,800.
- Technical analysis and technical levels align suggesting impending correction above $9,500.
Bitcoin has been trading sideways on the day Facebook confirms its cryptocurrency project by releasing the white paper. While Libra, the Facebook stablecoin is going to increase adoption, it viewed as both a threat to Bitcoin other fiat currencies.
Meanwhile, Bitcoin is trading at $9,178 at press time. The largest crypto asset retreated from the highs close to $9,500 on Monday. Prior to the correction, BTC/USD started the new uptrend last week on Friday at the support established at $7,500. The upward correcting Relative Strength Index (RSI) increased the confidence the Bulls had in the reversal. Besides, the price climbing above the 50 Simple Moving Average (SMA) 4-h added fuel to the momentum.
BTC/USD 4-h chart
Bitcoin sprung above $8,000 and extended the gains out of a narrow range between $7,500 – $8,100. The formation of a new uptrend above the trendline saw the price initially breaking above the 100 SMA 4-h at $8,150 before tackling the seller congestion zone at $8,200. Further correction past the key $8,400 resulted in a surge above $9,000 marking a new beginning for Bitcoin.
BTC/USD formed a new high after a period of more than 13 months around $9,472. Currently, Bitcoin is battling to hold on to the intraday support at $9,000. As long as the price stays above the trendline historical support, Bitcoin has the ability to recover to levels above the psychological $9,500. Sustained growth above $9,500 could push Bitcoin to levels at $9,800 – $10,000.
Also Read: 5 Reasons to Use Bitcoin As a Store of Value
The RSI at 60 is gradually sloping upwards indicating the rising bullish pressure. Continued growth past 70.00 could market another surge. Besides, the increasing divergence between the 50 SMA and the 100 SMA suggest that the bulls have most of the influence on the price direction.
Bitcoin Key Technical Indicators
Trendline: Rising trendline marks key support for BTC.
RSI: Upward slope shows strengthening bullish momentum.
Key support Areas: $9,000, 61.8% Fib level at $8,750, and $8,000.
Critical hurdles: $9,200, $9,400 and $9,800.