Bitcoin price steadily pushed for gains above the falling channel I discussed on Monday. Besides the channel support, the buyer congestion at $8,400 was very helpful in the recovery that almost tested $9,000 level. A high formed at $8,970 (on Coinbase) marked the end of the recovery on Monday.
Meanwhile, the correction that followed in the wake of the hurdle at the weekly high seems to have taken a breather above the 23.6% Fib level, of the last drop from $10,022.72 to a low of $8,415.37 around $8,800. BTC/USD is teetering at $8,878 amid a building bullish momentum likely to attract immense buying entries that could see the price make a comeback above the critical $9,000 level.
Bitcoin Price Technical Picture
According to the Relative Strength Index (RSI), BTC/USD is back in the hands of the bulls. Moreover, the ability to defend the support at $8,800 means that BTC/USD is back in the bullish phase. The RSI is trending upwards above 60 at the time of writing. If the movement continues above 70, the jump above $9,000 would be a matter of when and not if.
BTC/USD 1-hour chart
In addition to that, the short term 50 SMA in the 1-hour timeframe is on the verge of crossing above the longer-term 100 SMA. The double-cross is likely to cement the position of the bulls on the market as the focus stays on breaking above $9,000 and testing the resistance at $9,100.
Bitcoin Key Levels
Spot rate: $8,878
Relative change: -36.99
Percentage change: -0.41%
Trend: Bullish (short term bias)
Volatility: High
