Bitcoin Price Analysis: BTC/USD Pullback From The $9,000s Eyes $8,000 Before Another Breakout

By John Isige
Published May 4, 2020 Updated May 4, 2020
Best Buy In

DeFi Platform

Exchanges

Wallet

bitcoin-exchange-miners
Image Source: Shutterstock

Bitcoin Price Analysis: BTC/USD Pullback From The $9,000s Eyes $8,000 Before Another Breakout

By John Isige
Published May 4, 2020 Updated May 4, 2020
  • Bitcoin price continues to oust stability as $9,000 becomes impenetrable.
  • As bulls lose traction, Bitcoin could test $8,000 key support before a significant recovery occurs.

After entering into the $9,000 range last week, Bitcoin renewed the investors’ interest and especially with the block reward halving around the corner, the desire to join the market continues to grow. Bitcoin rose to a new April high at $9,466, however, this marked the end of the bull-run as Bitcoin plummeted to test support at $8,400. Intriguingly, a minor recovery ensued with bullish traders pulling Bitcoin towards $9,000.

The weekend session has been stable with the upward price action limited under $9,000. A short term support has been formed at $8,600. BTC/USD is dancing at $8,750 after losing more than 1.7% of its value on the day. The trend is in the hands of the bulls especially with the Relative Strength Index (RSI) falling from the overbought region.

BTC/USD daily chart

BTC/USD price chart
BTC/USD price chart by Tradingview

On the upside, Bitcoin is facing growing resistance at $9,000 and the descending trendline. It is apparent that another break into the $9,000 range would refresh the investor interest. At the same time, speculation surrounding the halving set to take place in less than a week, could result in a rally. More upside action is anticipated if the Bitcoin rises above the descending channel.

On the contrary, the prevailing action is bearish and the longer BTC stays under $9,000, the stronger the bearish grip becomes. A situation such as this would demoralize the bulls, who would start to lose traction and result in the price plummeting. There is a high chance that Bitcoin would retest the confluence support formed by the 200-day SMA and the 61.8% Fibo at $8,000 before a significant recovery comes into play. Other short term support areas include $8,600 and $8,400.

Bitcoin Intraday Key Levels

Spot rate: $8,747

Relative change: -167

Percentage change: -1.7%

Trend: Bearish

Volatility: High

 

advertisement

Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
John Isige
1154 Articles
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

Loading Next Story