- Bitcoin returns above $8,500 carrying the entire cryptocurrency market into the green.
- Bitcoin reversal seems imminent, especially if the RSI exits the overbought region.
Bitcoin has maintained a bullish mood on Tuesday to the extent of jumping above $8,500. The growth follows three days of dealing with the pressure from the selling front. The weekend was characterized by retracement moves from Friday’s failed attempt to break the hurdle at $8,200. The trading on Monday was marred with losses across the cryptocurrency market. However, Bitcoin managed to stick above $8,100.
The consolidation above the $8,100 was necessary for the gains experienced on Tuesday. The 1-hour chart clearly a digital asset that has the potential to sustain an uptrend despite the up and downs.
BTC/USD 1-hour chart
For now, Bitcoin is dancing slightly above $8,500 following a minor correction from the intraday high around $8,590. Technically, a reversal seems imminent. For instance, the Relative Strength Index hit a high at 80. However, the indicator is retreating and could eventually exit the overbought region. In case the drop below 70 occurs, Bitcoin bears are likely to catch momentum and force a reversal towards $8,000. The 200 Moving Average is holding ground at $8,000 and will provide support if BTC spirals.
Meanwhile, the Moving Average Divergence Convergence (MACD) confirms that the trend is still in the hands of the bull. Although, the bulls should not expect dramatic movements towards $9,000. Establishing support above $8,500 will play a key role in the recovery heading to $9,000.
Bitcoin Key Levels
Spot rate: 8,519
Relative change: 415
Percentage change: 5.13%
Support: $8,200 and $8,000
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
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