- The plunge to $9,100 ignited a buying spree among the investors.
- Chart indicators show the possibility of Bitcoin plunging to $9,100 or even $8,800.
Bitcoin brushed shoulders with $9,000 but immediately bounced forging a shallow recovery. The immediate recovery displayed the willingness of the investor to buy low in anticipation of a surge towards the $14,000 milestone.
The largest crypto is currently changing hands at $9,484 after failing to told ground above $9,700. In spite of the correction, the prevailing trend is still in favor of the bears. Besides, chart indicators show the possibility of Bitcoin plunging to $9,100 or even $8,800.
At press time, Bitcoin is trading at $9,507 amid a gradually building bullish momentum. The immediate upside is hampered by the resistance at the 100 Simple Moving Average (SMA) 15-mins chart currently at $9,529. Further up, BTC will come under acute selling pressure at the 50 SMA 15-mins chart currently at $9,567.
BTC/USD 15-mins chart
In the short-term, the trend has a bearish inclination. The Moving Average Convergence Divergence (MACD), for instance, is stuck in the negative zone. Moreover, the gradually increasing bearish divergence further has Bitcoin glancing lower.
The 50-Day SMA suggests that the sellers are likely to remain in control in the medium-term. In the same time frame, the MACD is moving south inside the bearish region. The increasing negative divergence is an indicator of impending selling dominance.
BTC/USD daily chart
To be on the safer side, Bitcoin bulls must push past $10,000 and preferably reclaim position above the 50 Moving Average. The support at $9,100 is still in danger especially with the volatility at its peak. If this area is cleared $9,000 will come in handy to stop declines that could touch $8,800.
Bitcoin Key Technical Levels
Key Support Areas: $9,400, $9,100 and $8,800.
Critical hurdles: $9,800, $10,000 and $10,200.
MACD: Increasing negative divergence suggests bears are gaining traction.
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John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige