Wednesday The price of Bitcoin (BTC) rose through a number of key resistance levels because traders are targeting the $ 9,000 mark. According to Cointelegraph Markets and CoinMarketCap The BTC / USD pair recovered approximately 14.5% to make a profit of USD 1,123.
With the halving just 13 days away, Bullish investors are expecting a rise above $ 9,000 to raise the price to $ 10,000 before halving. Let’s look at the charts to see what’s going on with Bitcoin.
Daily price chart of the cryptocurrency market. Source: Coin360
Today’s $ 1,123 increase has allowed Bitcoin’s price to address a number of key concerns. These included: resistance at $ 8,000, Fibonacci retracement of 61%, 100- and 200-day moving averages and expected resistance at $ 8,500.
Moving above $ 8,000 was urgently needed as the annual pivot was $ 8,100 or more A rise above $ 8,500 would convince some traders that Bitcoin’s market structure has changed and the trend is now bullish.
Daily BTC USDT chart. Source: TradingView
After such a strong upward trend, many traders will look for a price that will pull back to test the underlying support or even the 61.8% Fibonacci retracement. At press time, the Relative Strength Index rises closer to the overbought territory on a daily basis, and the stochastic RSI is already overbought.
Filbfilb, the Cointelegraph employee, said this earlier in the day At $ 8,700, the current increase appears to be overwhelmed and the table below suggests this Bitcoin needs further evidence of the underlying supports.
Daily BTC USD chart. Source: TradingView
Some will rightly argue that These indicators cannot be fully trusted if the price of Bitcoin rises to over $ 1,000 due to the increased purchasing volume. since it is known that the asset will continue to grow even if the RSI and MACD are overbought. It is therefore advisable to monitor the shorter time frames more closely.Take the 60-minute chart, for example, because it’s easier to see sales increases and possible reversal patterns.
Bitcoin’s price is already above the March 8 high of $ 8,915 The price is currently based on a high volume $ 8,800 VPVR node. Although another test of previous resistance levels below this price is expected, A bullish scenario would mean that Bitcoin’s price found support at $ 8,800.
To do this, the purchasing volume would have to remain as it is for most of todayThis would increase the possibility of a 71.8% Fib level attack at $ 9,060. Do that would give traders the opportunity to take advantage of a small volume gap in the VPVR and also It would open the door for the price to rise to a resistance level of $ 9,200.
From that point on Bitcoin is expected to encounter some difficulties in the $ 9,200 to $ 9,400 zonewhere there is another high volume VPVR node.
A less bullish outlook
It is not easy to imagine a short-term bearish scenario for the price of Bitcoin. Obviously, anything can happen, and Bitcoin’s recent 50% drop in price on March 13 is still the best example of how quickly the market can turn against investors.
A 15% profit is no reason to laugh vertical movements like the one seen today break through resistance levels, but they also do not form solid supports the normal phases of consolidation are overlooked.
In the past, the Fib level of 61.8% was one of the most important for the Bitcoin price movementSince it often acts as rigid resistance and strong support, it depends on the structure of the Bitcoin market.
As mentioned above, A repetition of recent lows or resistance levels is normal behavior that assets show in all markets after a riseand the daily Bitcoin chart shows that there is a VPVR volume gap of $ 8,560 to $ 7,700.
If the price seems too high and traders start to make profits, the momentum will slow down, smart traders will open short positions and When the sales volume begins to exceed the purchasing volume, there can be a repeat of $ 8,000 and / or a fib level of 61.8% at $ 7,927.
If the price doesn’t bounce off the 61.8% Fib level, it’s $ 7,700 and $ 7,450 that traders are likely to bid on. If the price doesn’t stay at the $ 7,450 support, there is a problem and traders will start shouting “trend reversal”.
Investor sentiment improves as the halving approaches
The index of fear and greed. Source: Alternative.me
However Today was a fantastic day for the bullish traders and when the halving approaches the performance can repeat itself. The Fear and Greed Index shows a remarkable improvement: the mood number is now 26.
Although the index still shows investors are afraid of Bitcoin’s prospects, is a huge improvement over last week’s Extreme Fear readingand the number is supposed to be updated in 5 hours, which means that Today’s 15% increase may not be reflected in the current measure.
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