- Bitcoin re-enters the $8,000 range as focus shifts to $9,000.
- The high volatility and increasing buying activity present the perfect technical picture for more upward action.
Bitcoin once gains proved that it had indeed found a bottom in December by pushing the bullish action a notch higher. Recently, the correction above $7,000 came short of $8,000. Bitcoin consolidated the gains between $7,800 support and $8,000. However, the largest digital asset in the cryptocurrency industry wrote a different narrative on Tuesday by jumping above the coveted $8,000.
The bullish action was strong enough to break the resistance at $8,400 but left $8,500 untested. The reversal that ensued pushed Bitcoin against the tentative support at $8,300 and $8,200 respectively. However, the bulls came out strongly at $8,150 and put a stop to the declines. Meanwhile, Bitcoin is trading at $8,253 following a 1.38% growth on the day.
XBT/USD daily chart
It is important to note that Bitcoin price is teetering above the 50-day Moving Average. The strong support offered by this moving average could continue to influence the price, further boosting the approach towards $9,000. Similarly, the break past the falling wedge pattern resistance appears to be a contributing factor to the recent price action.
From another technical perspective, the Relative Strength Index suggests that the bulls are in control. Besides, a break into the overbought region above 70 would place BTC futures contract on a path to the psychological $9,000. However, Bitcoin must reclaim the lost ground above $8,400 and push for gains past $8,500 in the short term. On the flip side, support at $8,150 and $7,800 will remain intact in the event another reversal ensues.
Bitcoin Key Technical Levels
BitMEX index price: $8,301
24-hour volume: $4.3 billion
Open interest $739 million
Relative change: 156