May 5th The price of Bitcoin (BTC) has made up a substantial part of its losses due to the correction of the weekly close on SundayData from Cointelegraph Markets and CoinMarketCap show that the digital asset has passed the $ 9,000 mark again in the last hour.
Despite the correction at $ 8,500 on Sunday Bitcoin price recovered quickly and found support in the range of $ 8,700 to $ 8,850 before you spend most of Monday merging into this area.
Daily cryptocurrency market price chart. Source: Coin360
Interestingly, Bitcoin’s rapid recovery to its previous trading range occurs when The U.S. Center for Disease Control and Prevention estimates that an increase in the COVID-19 infection rate in the U.S. causes 134,000 deaths. until June 1st. This happens when many states implement plans that allow people to return to work to revitalize the economy.
Other bearish news for the markets came to a close today than that The Treasury announced plans to raise $ 3 trillion in loans this quarter to bring the United States’ total debt closer. to $ 25 billion.
From today More than 30 million Americans were unemployedA government-sponsored small business financial support program spent all of the allocated funds in the first few days after its launch.
Given the recent correlation between traditional markets and crypto markets All of these factors should negatively impact crypto market prices, but this is clearly not the case with Bitcoin at the moment..
Bitcoin bulls are targeting $ 9,500
Dealers will notice this within the 4 hour timeframe Bitcoin had been in a fight all day To stay above 20 MA, the price was pushed between $ 8,700 and $ 8,550, with two high-volume nodes located in the visible area of the volume profile.
The hourly timeframe shows that the price had already declined USD 8,950 three times A move above $ 8,970 was critical to a profit above $ 9,000.
In the last hour BTC / USD overcame this resistance, pushing the price up to $ 9,100 in an attempt to remove $ 9,130 resistance. Over $ 9,140, traders will target $ 9,440 and $ 9,600.
BTC USDT 1 hour chart. Source: TradingView
The 4-hour diagram shows that too The MACD is on the verge of convergence with the signal line, and in the past 8 hours the RSI has risen from 47 in the bullish area to 60.
Traders will note this on the hourly chart Profit taking takes placeas the long upper wicks of the last two candles show, along with increased sales volume, increasing RSI and CMF.
1 hour BTC USDT chart. Source: TradingView
Since the current one-hour candle is about to close, Traders should look for volume to see if momentum slows and the price drops below $ 9,000 or if Bitcoin’s price can break the resistance zone from $ 9,140 to $ 9,200.
As stated in several analyzes, The key area for continuing the uptrend is $ 9,500 to $ 9,600.
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