- Bitcoin price throws jabs at the 61.8% Fibo resistance to clear the path for gains past $9,000.
- Technical levels continue in favor of the bulls amid gradually increasing buying entries.
Bitcoin price is back in a bullish zone which will act as the stepping stone for a rally above $9,000. BTC/USD is exchanging hands at $8,937 (on Coinbase exchange) after trending higher 2% on the day. The trading in the last couple of days has mostly favored the bulls. However, the buyers have lacked the power to pull Bitcoin price above $9,000. The largest cryptocurrency has, nonetheless, stabilized above $8,800 despite the fears that the Coronavirus may become a global pandemic.
Bitcoin’s immediate upside is limited by the 61.8% Fibonacci level, taken between the last swing high of 10,524 and a swing low of $6,431. Penetrating the congestion of buyers in this zone is definitely going to pave the way for gains above $9,000, Other resistance zones to watch include $9,100, the 50-day SMA at 9,302 and $9,500.
BTC/USD daily chart
Meanwhile, technical analysis shows that the bulls are ready for action especially when the up-trending RSI is considered. The moving average gap between the 50-day SMA and the 100-day SMA speaks of the influence the buyers have over the price.
On the other hand, the bulls fail to hit the jackpot at $9,000, sellers are likely to swing in and take charge of the joystick. A reversal still hangs in the balance and, therefore, having support levels to watch is vital for traders. The first support, in this case, is $8,750, followed by $8,600, then 50% Fibonacci level at $8,480, the 100-day SMA at 8,396 and lastly $8,200.