- Bitcoin barely stays above $9,000 after selling pressure reversed the gains made over the weekend.
- Sideways trading is likely as shown by the ranging RSI beneath the resistance at 40.
Bitcoin majestically cleared the resistance at $9,000 over the weekend. For the first time in 2020 Bitcoin bulls managed not just to push the price above $9,000 but also extend the gains towards $9,200. Unfortunately, the high formed at $9,196 market the end of the brief rally.
An almost immediate reversal followed the momentum that stalled short of $9,200. Bitcoin spiraled, unbothered of the weak support at $9,000. The next key support at $8,750 was penetrated sharply, culminating in more losses towards $8,500.
Meanwhile, a shallow recovery has taken place, with the price bouncing off the support established at $8,500. Bitcoin is trading at $8,640 after the shallow recovery failed to break above the resistance at $8,750.
BTC/USD 1-hour chart
The immediate downside is supported at $8,600 while the 100 Moving Average on the 4-hour chart is in line to provide additional support. Following the drop from the weekend high, the Relative Strength Index (RSI) has recovered considerably to touch the level at. However, the upward motion appears to have stalled, leaving room for a downward correction. If the RSI makes moves towards 30 (oversold region), Bitcoin could retest $8,500 amid increasing seller confidence.
For now, the best the bulls can do is to ensure that $8,600 holds as short term support. Similarly, they should push the price above the critical resistance at $8,750 and push towards $9,000.
Bitcoin’s Levels To Watch
Spot rate: $8,640
Relative change: -57
Percentage change: -0.66%
RSI: Stalls at 40 and starts ranging, hinting sideways trading in the short term.
Support: $8,500 and $8,250
Resistance: $8,750 and $9,000