Bitcoin block reward halving is expected in approximately five days. Last week, the price short up to $9,466. The massive gains were attributed to increased network activity ahead of the halving. However, a retreat occurred with the price first testing a newly established support at $8,400 before surging back to $9,200. However, the last few days have seen Bitcoin remain lethargic around the pivotal level at $9,000. Gains towards $9,200 (key resistance) have become unstainable. On the downside, buyers are keen on keeping the price above the first significant support at $8,800.
As halving approaches, most investors expect a price rally towards the end of the year. For this reason, they are expectedly stocking up on Bitcoin. The same can be confirmed by the increase in the network’s transaction fee to a nine-month high as well as the rise in the hashrate. In other words, a pre-halving rally targeting $9,500 seems imminent while the probability of gains towards $10,000 keeps growing.
BTC/USD daily chart
At the time of writing, Bitcoin is trading at $9,022 after recovering from an intraday low of $8,922. In spite of the recovery, Bitcoin is facing a bearish trend amid shrinking volatility. The pivotal price action at $9,000 is expected to continue into the next sessions even as the asset approaches its third halving since the launch.
The RSI clearly shows that sideways price action would take center stage. Bitcoin price key levels are $9,200 resistance and the afore-mentioned support at $8,800. The short term trendline (broken line) is offering immediate support. If push comes to shove and a reversal extends, the 100-day SMA and the 61.8% Fibonacci level will collaborate to provide support at $8,000.
Bitcoin Intraday Key Levels
Spot rate: $9,022
Trend: Bearish
Volatility: High
Low: $8,922
High: $9,075
