- Interest continues to build towards Bitcoin as the $9,000 level beckons.
- Bitcoin likely reversal will find support at $8,700, $8,500 and $8,400.
Bitcoin keeps soaring to new 2020 highs ahead of the May halving event. It has been predicted that the asset will grow significantly in value following the scarcity and demand likely to be created by the Satoshi Nakamoto four-year rule.
For now, Bitcoin price is teetering at $8,781 after extending the gains above the previous hurdle at $8,500. The gains are a reflection of the general bullish weather within the cryptocurrency market. Cryptoassets such as Bitcoin SV are up more than 100% in less than 24 hours.
Looking at the 4-hour chart, one can tell that Bitcoin indeed succeeded in the hunt for a bottom. The crypto winter in the third and fourth quarters of 2019 saw Bitcoin plunge to lows around $6,500. The reversal from the December low has sustained a formidable uptrend in spite of the frequent up and down movements.
XBT/USD 4-hour chart
The surge above $8,000 renewed hopes that Bitcoin will once again trade above the psychological level at $9,000. It appears that a break from the rising triangle resistance 8,440 greatly contributed to the recent surge to highs at $8,908.
From a technical perspective, Bitcoin is likely to find support above $8,500 if not $8,700. As the dust settles in the crypto market, the buyers will gain strength to pull Bitcoin past $9,000. For now, traders need to be on the lookout for a reversal movement by the RSI. The motion towards the level at 50 will be a key indicator of a bearish correction.
Bitcoin Key Levels
BitMEX index price: $8,770
24-hour volume: $5.3 billion
Open interest: $828 million
RSI: Retreat below 70 could signal a bearish correction
Support $8,700 and $8,500
Resistance: $8,800, $8,900 and $9,000