Bitcoin Lacks Momentum Above $9k: Here’s Why Bulls Are Comfortable

Bitcoin finally managed to clear the $9,000 resistance zone against the US Dollar. BTC price must stay above the $8,950 and $8,860 support levels to continue higher in the near term. Bitcoin is trading in a positive zone above the $8,950 and $9,000 levels against the US Dollar. The price traded as high as $9,172 and it is currently correcting lower. There is a key bullish trend line forming with support near $8,860 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair could correct a few points, but it is likely to bounce back from $8,950 or $8,860. Bitcoin Struggling To Gain Pace After many failed attempts, bitcoin finally managed to pop above the $8,950 and $9,000 resistance levels against the US Dollar. BTC price settled nicely above the $9,000 level and the 100 hourly simple moving average. A new weekly high is formed near $9,172 and the price is currently correcting lower. The current technical structure suggests that the price is lacking strength above $9,000. It declined below the 23.6% Fib retracement level of the upward move from the $8,670 low to $9,172 high. However, the bulls need not to worry just yet as there are many supports on the downside near the $9,000 and $8,950 levels. The first key support is near the $8,950 level (the recent breakout zone). The next key support is near the $8,920 level. It coincides with the 50% Fib retracement level of the upward move from the $8,670 low to $9,172 high. More importantly, there is key bullish trend line forming with support near $8,860 on the hourly chart of the BTC/USD pair. If bitcoin price slides below the $9,000 and $8,950 support levels, there are high chances of it finding a strong buying interest near the trend line and the 100 hourly SMA. Bitcoin Price On the upside, an initial resistance is near the $9,100 level. The first major barrier for the bulls is near the $9,200 level, above which they are likely to aim a test of the main $9,500 resistance area. Chances of Downside Break The trend line support near $8,860 and the 100 hourly simple moving average are very important for the current wave. If bitcoin price slides below the trend line, there is a risk of a fresh bearish wave below $8,800. The key support below $8,800 is near the $8,700 level. Any further losses could open the gates for a push towards the $8,500 level in the near term. Technical indicators: Hourly MACD – The MACD is about to move back into the bullish zone. Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is still well above the 50 level. Major Support Levels – $8,950 followed by $8,860. Major Resistance Levels – $9,100, $9,200 and $9,500.

from NewsBTC https://www.newsbtc.com/2020/03/06/bitcoin-btc-bulls-are-comfortable/

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