- Bitcoin is attempting to rebound higher after dropping by a steep 16% over the past week or so.
- The cryptocurrency broke beneath the rising trend line and went lower, however, it is now trying to recover as it attempts to break back above.
After the previous 16% price fall that was caused when Bitcoin was unable to break above $10,000, the cryptocurrency is now attempting to rebound higher. It had managed to find support at $8,420 and is now making its way toward the $9,000 region again.
Despite all the recent price declines, Bitcoin still remains up by a total of 28% throughout 2020 as the bullish run continues to drive prices higher in the lead up to the Bitcoin block halving which is expected at some point during May 2020.
Bitcoin Price Analysis
BTC/USD – Daily CHART – SHORT TERM
Looking at the daily chart above, Bitcoin went on to break beneath the rising trend line but managed to find additional support slightly beneath the downside 1.618 Fibonacci Extension level at $8,558. Specifically, it managed to rebound at $8,420 which allowed the cryptocurrency to bounce higher.
We can see that over the past 3-days, it struggled to overcome resistance at $9,000 which is provided by a short term bearish .236 Fibonacci Retracement level.
Short term prediction: NEUTRAL
Bitcoin is currently neutral at this moment in time and prevented itself from turning bearish after managing to break back above $8,500 pretty quickly. It would need to break above $9,000 to start the process of creating a short term bullish trend.
If the bulls push higher, the first level of resistance lies at $9,000. Above this, resistance is located at $9,270 (bearish .382 Fib Retracement), $9,506 (bearish .5 Fib Retracement), and $9,741 (bearish .618 Fib Retracement).
On the other hand, if the sellers push lower, support lies at $8,672 (.5 Fib Retracement), $8,559 (downside 1.618 Fib Extension), and $8,420. If the selling continues, support lies at $8,242 which is provided by the .618 Fibonacci Retracement level.
Support: $8,559, $8,500, $8,420, $8,250, $8,200, $8,000.
Resistance: $8,979, $9,000, $9,100, $9,270, $9,506, $9,740, $9,975, $9,000, $9,270, $9,500.
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.
Yaz is a cryptocurrency technical analyst and has been actively trading financial markets for over 7years, with 4 years of crypto experience. He is an Economics graduate who has taken a keen interest on the future potentials of blockchain in the financial industry. Aside from cryptocurrency and trading Yaz enjoys spending his time watching his favourite football team (Liverpool F.C.) compete as well as keeping up-to-date with the UFC. Follow him at @TcmYaz.