How The Fed Cut Triggered A Bullish Bitcoin Reversal Overnight

Bitcoin is trading in a positive zone against the US Dollar, especially after the fed interest rate cut . BTC price is likely to continue higher above the $8,900 and $9,000 resistance levels in the near term. Bitcoin is likely to gain traction after the recent breakout attempt against the US Dollar. The price is trading nicely above the $8,680 and $8,700 support levels. There is a key bullish breakout pattern forming with resistance near $8,840 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair is likely to surge higher once it clears the $8,840 and $8,900 resistance levels. Bitcoin Likely To Surge Higher In the past few sessions, bitcoin remained well bid above the $8,600 and levels against the US Dollar. BTC price traded as high as $8,967 before correcting lower below the $8,800 area. There was a break below the 23.6% Fib retracement level of the upward move from the $8,398 swing low to $8,967 high. However, the bulls defended the key $8,680 support level and the 100 hourly simple moving average. Besides, the 50% Fib retracement level of the upward move from the $8,398 swing low to $8,967 high is acting as a strong support. Bitcoin is now trading with a bullish angle above the $8,750 level and the Fib retracement level of the upward move from the $8,398 swing low to $8,967 high. Bitcoin Price There is also a key bullish breakout pattern forming with resistance near $8,840 on the hourly chart of the BTC/USD pair. If there is an upside break above the triangle resistance, the price could make another attempt to gain bullish momentum above $8,900. A successful close above the $8,900 and $9,000 levels is likely to set the pace for a larger upward move especially after the recent emergency rate cut by the fed. The next stop for the bulls may perhaps be $9,200 or $9,320. 100 SMA as a Key Support On the downside, there are a few key supports near the $8,760 level and the triangle. The next major support for bitcoin is near the $8,700 level and the 100 hourly simple moving average. If the price fails to stay above the $8,700 support and the 100 hourly simple moving average, there is a risk of another slide towards the $8,400 support area in the near term. Technical indicators: Hourly MACD – The MACD is now gaining pace in the bullish zone. Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently well above the 50 level. Major Support Levels – $8,760 followed by $8,700. Major Resistance Levels – $8,840, $8,900 and $9,000.

from NewsBTC https://www.newsbtc.com/2020/03/04/fed-cut-triggered-bullish-bitcoin-reversal/

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