Bitcoin

Why all eyes should be on the Bitcoin price level of $ 9,000 this week

Last week, Bitcoin (BTC) price seemed ready to take a big step up to $ 11,000. Instead, we saw a week’s price movement along with a slight decline. Bitcoin has reached the top? Is there too much selling pressure around $ 10,000?

Let’s take a look at what happens to the largest cryptocurrency by market cap, BTC.

Why all eyes should be on the Bitcoin price level of $ 9,000 this week
Why all eyes should be on the Bitcoin price level of $ 9,000 this week

Daily performance of the cryptocurrency market. Source: Coin360.com

More sellers than buyers

BTC / USD hourly chart. Source: TensorCharts

Bitcoin is currently facing massive resistance between $ 9,500 and $ 10,005, according to the Binance order book listed on the tensor chart heat map above. Currently, these sales walls, most of which are represented by the yellow lines, show a total of 1,737 Bitcoin sales compared to 1,351 purchases represented by the darker blue lines.

Although this data is only included in the Binance BTC / USDT pair table, it gives a good indication that there is currently not enough buying pressure to push the BTC / USD pair above USD 10,000. However, it is important to note that this data is constantly changing and should only be used if it is constantly referenced.

However, this explains why the price of Bitcoin is in a narrow range between $ 9,000 and $ 10,000, and until more buyers step in, this will obviously not change.

The week view is brilliant

BTC / USD weekly chart. Source: trade view

On the weekly chart, Bitcoin remains above the previous resistance. However, we still don’t see a full sail body near this line. At this point, it will be a clear signal for the bears to change the trend, and while it looks good at the time of this writing, if we close below $ 9,000 today, it will be a big setback for Bitcoin in the short term.

However, all eyes should be on $ 9,000 next week as this is a breakout of a descending channel. This support level drops by around $ 100 every week. If sales walls are not significantly breached for a long time, Bitcoin support may slowly drop to $ 6,400 by the end of the year. This is of course until a new path is created.

The daily MACD continues its bearish divergence

Daily MACD chart for the BTC / USD pair. Source: TradingView

Daily MACD chart for the BTC / USD pair. Source: TradingView

The Moving Average Convergence / Divergence Indicator (MACD) continues to decline as it has developed exactly as expected last week’s analysis. The top picture of the MACD is this week and it shows signs that it has reached its maximum divergence, which is indicated by the blue line of the MACD, which is beginning to curve slightly.

The bottom MACD picture shows the position of the last week when the signal line seemed to drop to around 400 and the MACD line to 200. This is exactly where you are today and what is required for a bullish reversal that both lines converge by 350.

If the MACD moves in this direction, it is a clear signal for the bulls to intervene and I would expect the number of buyers to increase. However, if the MACD and signal lines continue to diverge in this way, you shouldn’t expect fireworks soon.

The way up

BTC / USD daily chart. Source: TradingView

When you return to the daily timeframe, Bitcoin opens up another path. We are currently just above the USD 9,100 support, showing the resistance of the center of this channel around USD 10,500 in the middle of next week.

The midpoint level also coincides with a 100% Fibonacci retracement. When Bitcoin reaches this level, you are likely to be under a lot of selling pressure, which is likely to pull out of support before you see any significant movement.

However, support for this channel will be around $ 10,000 by the end of the week, and this could – I can only say – the last time you can buy Bitcoin under $ 10,000 (yes, hit yourself in the face now).

Short-term outlook

BTC / USD pair daily chart. Source: trade view

Ends on the hourly chart and Bitcoin seems ready for a $ 9,400 leak. This could end the week very bullish. In my view, even a breakout from this point to $ 9,000 would leave the bulls under control for now.

But being under $ 9,000 at this point would change everything. Since this is Bitcoin, prepare yourself for both contingencies as best you can, and that usually happens.

Bullish scenario

A closing price above $ 9,000 is bullish. From here, I’m going to break through the walls of sales that start at $ 9,500 to $ 10,005. If we get over it, I expect a big resistance of $ 10,500 before $ 11,000 or $ 12,000 can be considered as options.

Bearish scenario

A drop below $ 9,000 opens Fibonaccis .618 to $ 7,890 daily as a blatant reality. This would also completely override the two channels I see this week. From this level, it would be time to split the 6,400 and 4,000 charts again. Still, my personal perspective is another week of side trading for Bitcoin.

The views and opinions expressed here are solely those of @official and do not necessarily reflect Cointelegraph’s views. Every step of investment and trading involves risks. You have to do your own research when making a decision.

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