- Bitcoin breaks the $9,000 resistance but fails to sustain the gains.
- A reversal could be necessary for Bitcoin to create fresh interest from the bulls.
Bitcoin is still the cheerleader in the cryptocurrency market. Besides, it is the largest digital asset and by far the most traded. Its impact on the altcoin market continues to be felt more than a decade later.
The surge at the beginning of this week aimed at $9,000. However, the bulls lost momentum slightly above $8,900. The retracement I discussed on Thursday seems to have been necessary for Bitcoin’s recovery. In other words, following the retreat below $8,600, Bitcoin bounced off the support at $8,570 and extended the movement marginally above $9,000.
Unfortunately, the gains were unsustainable, and Bitcoin succumbed to the pressure. At the time of writing, Bitcoin is trading at $8,884 following a 1.95% growth in value on the day. An extended reversal appears to be imminent, especially with the Relative Strength Index (RSI) retreating after touching the level at 70.
BTC/USD 1-hour chart
Both the short term and long term analyses have a bearish bias. As seen, Bitcoin is currently erasing accrued gains since the opening of the session. In addition to that, the formed rising wedge pattern (red dotted trendlines) signals that a reversal is underway, although it might not come immediately.
It is clear that Bitcoin is not technically nor fundamentally ready to take on the resistance at $9,000. This means a reversal is necessary to ensure that the bulls, regroup, gain strength and create fresh demand to push Bitcoin not only above $9,000 but also towards $10,000. In the meantime, the Andrews Pitchfork suggests that Bitcoin is still in the bullish phase of the ongoing surge.
Bitcoin Key Levels
Spot rate: $8,893
RSI: Retreat from the overbought region signals rising selling activity.
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