- Bitcoin stays above $8,000 after defending $8,200 support and adjusting above $8,300
- The rising triangle pattern breakout could give way for gains above $9,000.
Bitcoin is nurturing a short-term uptrend following the dive to $7,700. However, the recovery is hampered at $8,400. There was a minor break above $8,500 on Tuesday but it culminated in declines. Traders and analysts called a fake breakout that could end up pushing Bitcoin to levels close to $7,200. However, Bitcoin appears to be strongly supported above $8,200.
In spite of the recovery, the short-term trend remains largely inclined to the bears. Besides, the 100 moving average (MA) on the daily chart continues to widen the gap below 200 MA. This clearly shows that the sellers are generally in control.
XBT/USD daily chart
At the same time, the moving average convergence divergence convergence (MACD) displays a relatively bullish picture. The MACD has since the drop in price last week recovered from levels around -450 to step above the zero lines. The visible divergence upwards double-down on the bulls’ ability to hold the price above $8,300 (short-term) support. The buyers could also gather some energy to continue hitting on the immediate hurdle at $8,400.
Meanwhile, Bitcoin longs traders should a possible breakout above the resistance formed by the rising triangle pattern. This pattern mostly appears in an uptrend and is characterized by a diminishing volume as the price grinds towards a breakout. Moreover, it is a continuation pattern that currently targets a breakout to levels between $9,000 and $9,200.
XBT/USD Key Technical Indicators
Spot rate: $8,333
Relative change: -50
Percentage change: -0.63%
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