- Bitcoin price steps above the descending trendline as bulls return on a revenge mission.
- Bitcoin looks forward to breaking above $8,600 for an extended movement towards $8,800 and $9,000.
The recent correction in Bitcoin is likely to have favored Bitcoin shorts on margin trading platforms like BitMEX. However, the current recovery from the lows formed at $7,699.50(on Coinbase) suggests that it’s time for Bitcoin long traders to reposition themselves for a rally targeting $8,800 and $9,000 respectively.
At press time XBT/USD is trading above the 23.6% Fibonacci retracement level with the last swing high at $10,439 and a swing low of $7,699.50. The bulls already breached the resistance at $8,500 to post an intraday high of $8,515.15. The correction from Monday lows ($7,699.50) step above $8,000 and the descending trendline resistance catapulted the price to first October high.
XBT/USD 2-hour chart
In spite of the correction, the longs traders should not expect a smooth ride to $9,000. Besides, immediately capping movement to the upside is the 100 moving average (MA) on the two-hour chart at $8,537. In addition to that, the 38.2% Fibo resistance marginally below the target at $8,800 could be a hard nut to crack. Consequently, BossIndicators a premium level analyst on Tradingview predicts that Bitcoin could plunge back to $7,500 in the event it fails to correct above $8,600.
“All our technical indicators are indicating bitcoin is in bull mode and we are currently long at $8030 Key resistance levels to take profit are $8600 and $8900. If BTCUSD fails to break above 8600 We could see a dip to $7500. Keeping a tight stop loss just in case.”
The trend with the moving average convergence divergence displays a positive picture for XBT/USD in the near-term. The bullish divergence inside the positive region signals a stronger building bullish momentum. It is likely that the break above $8,600 will pave the way for gains towards $8,800 and $9,000 respectively.
XBT/USD Key Technical Indicators
Spot rate: $8,438
Relative change: $+135.61
Percentile change: 1.65%