- Bitcoin price continues to oust stability as $9,000 becomes impenetrable.
- As bulls lose traction, Bitcoin could test $8,000 key support before a significant recovery occurs.
After entering into the $9,000 range last week, Bitcoin renewed the investors’ interest and especially with the block reward halving around the corner, the desire to join the market continues to grow. Bitcoin rose to a new April high at $9,466, however, this marked the end of the bull-run as Bitcoin plummeted to test support at $8,400. Intriguingly, a minor recovery ensued with bullish traders pulling Bitcoin towards $9,000.
The weekend session has been stable with the upward price action limited under $9,000. A short term support has been formed at $8,600. BTC/USD is dancing at $8,750 after losing more than 1.7% of its value on the day. The trend is in the hands of the bulls especially with the Relative Strength Index (RSI) falling from the overbought region.
BTC/USD daily chart
On the upside, Bitcoin is facing growing resistance at $9,000 and the descending trendline. It is apparent that another break into the $9,000 range would refresh the investor interest. At the same time, speculation surrounding the halving set to take place in less than a week, could result in a rally. More upside action is anticipated if the Bitcoin rises above the descending channel.
On the contrary, the prevailing action is bearish and the longer BTC stays under $9,000, the stronger the bearish grip becomes. A situation such as this would demoralize the bulls, who would start to lose traction and result in the price plummeting. There is a high chance that Bitcoin would retest the confluence support formed by the 200-day SMA and the 61.8% Fibo at $8,000 before a significant recovery comes into play. Other short term support areas include $8,600 and $8,400.
Bitcoin Intraday Key Levels
Spot rate: $8,747
Relative change: -167
Percentage change: -1.7%