Bitcoin Price Analysis: BTC/USD Inching Closer To $9,000, Temporary Relief Or Halving Effect?

• Bitcoin price renews bullish momentum towards $9,000 post-halving.
• BTC/USD failure to break the resistance at $9,000 jeopardizes the efforts put in by the buyers.

For the last four days, the cryptocurrency market has been under heavy selling pressure especially for the largest cryptocurrency, Bitcoin. The weekend crash refreshed levels at $8,100, which confirmed the presence of buyers above $8,000.

The pre-halving dump came unexpected and caught many traders off guard. For instance, liquidations at BitMEX shot up significantly on Sunday. The attempts to recover towards $9,000 coincided with the halving that reduced mining rewards from 12.5 to 6.25 BTC. The pomp and dance expected by investors failed to materialize as BTC/USD remained lethargic unable to clear resistance at $8,800.

Meanwhile, at the time of writing, Bitcoin is trading at $8,940. After opening the session at $8,823 the bulls took over pushing the throttle forward. Bitcoin has drawn closer to $9,000 but hit a wall at $8,979 (intraday high). The recovery to towards $9,000 could mean that bulls have finally composed themselves and are ready for a comeback above $10,000 or the halving effect is kicking in.

BTC/USD 30’ chart

From a short term technical perspective, Bitcoin is in the hands of the bulls. Its immediate downside is supported by an ascending channel. Also aiding in holding the price up is the 21 Simple Moving Average (SMA) in the 30’ range and the 50 SMA currently at $8,800.

The Relative Strength Index (RSI) trend at the time of writing shows that sellers are gaining traction after Bitcoin failed to clear the resistance at $9,000. If the volume continues to expand, then bears could have a bigger say in the direction the price would take. The most important levels to watch is the 50 SMA and the channel support. Further declines will seek refuge at $8,600, $8,400 and $8,200.

Bitcoin Intraday Key Levels

Spot rate: $8,912

Relative change: 91

Percentage change: 1.1%

Trend: Bearish biased (short-term)

Volatility: Expanding