The price of Bitcoin (BTC) soared today and rose 5.78% to a daily high of $ 9,398 before being traced back to consolidate near $ 9,300. The strong upward move pushed CoinMarketCap’s key digital asset through the resistance area from $ 8,800 to $ 8,930.
As the midday correction lowered the price to $ 8,122, Bitcoin price has rallied 14.48%, causing traders to look for USD 9,200 as support.
Weekly market price chart for cryptocurrencies. Source: Coin360
When Bitcoin approaches $ 10,000, the $ 9,300 to $ 9,400 zone could be a sticking point where the resistance will trigger a retreat from previous resistance levels at $ 9,200 and $ 9,061, where the 78.6% Fibonacci retracement is located.
1 hour BTC USDT pair chart. Source: TradingView
In a 1 hour time frame The price of Bitcoin appears to be forming a bullish flag as the flagpole has settled in a sharp surge in volume The current consolidation is accompanied by a decline in trading volume.
Over the next few hours, the price appears to be consolidating in the range of $ 9,260 – $ 9,334where there is a high volume VPVR node that is also aligned with the base of the flag. The bearish trendline from the May 7th high at $ 10,070 remains higher, and during today’s session the price encountered resistance twice on the trendline.
Today’s rise also brought the price up the channel and as the day progressed, the price found support along the top of the channel.. Falling below $ 9,300 will bring the price back into the channel and increase the likelihood that the price will drop to 20 MA at $ 9,180.
If the bulls are able to push the price above the $ 9,400 level, traders will target $ 9,750 as the next target.
Investor confidence continues to improve
As Cointelegraph reported this week Bitcoin’s rapid recovery of 14.48% from $ 8,122 was accompanied by a sharp decline in the implied volatility of the digital asset.
According to Marcel Pechman, Cointelegraph employee, The decline in implied volatility only illustrates one scenario in which “traders expected the price to recover or fall during and after the eventso there is a short-term spike. ”
Pechman also stated that:
Implicit volatility that reaches a maximum level means that premiums on option markets have skyrocketed. This should be interpreted to mean that the market demands more for insurance and buys in both directions (bullish) and sells (bearish).
Hourly BTC USDT chart. Source: TradingView
Now that the halving is overHowever, the volatility of the circular saw observed on March 11 could decrease This does not mean that a sharp drop to recent lows is off the table..
If the price drops below $ 9,000, the next support will range from $ 8,900 to $ 8,700.And if this level is not maintained, the price will almost fall below the rising trend line to return to the lows of $ 8,300 to $ 8,100 from March 9-11.
In the short term, traders should watch the trading volume like An increase in sales volume is likely to be followed by a revision of the $ 9,200 to $ 9,150 range.
On the other hand, the increase in trading volume could indicate this An upcoming surge will help the price break out of the pennant and overcome the resistance at $ 9,400.
The views and opinions expressed here are solely those of author and do not necessarily reflect Cointelegraph’s views. Every investment and every trade step involves risks. You have to do your own research when making a decision.