Bitcoin Price Analysis – Retest of support incoming
Just 9 days ago Bitcoin price dropped to its lowest in 5-month and in a matter of days surged by 40% to reach $10,500 level. Recent Bitcoin price upward swing is largely attributed to China President’s positive remarks on blockchain technology.
Currently, on intra-day movements, BTC price is holding well above the $9000 support level, which is also the current MA200 (daily). An upside break above the $9,500 levels could signal the start of a fresh rally.
However, drifting RSI and declining volume suggest $9000 may not hold for long. If the price breaks below $9000, Bitcoin could decline further towards $8800 – $8750 price range. Stoch RSI on the daily chart also indicates Bitcoin price is at overbought levels.
From a long term perspective, Bitcoin is still within the downward channel as earlier predicted and may re-test again the $7400-$7800 price range. If the prices don’t hold above the $7400 level, drop to $6600-$6800 price range is highly expected.
Pattern from the last few days indicates buyers are accumulating at the lows and selling quickly to secure profits. Continued such behavior may eventually surplus supply in the market, outweighing demand and causing the asset price to fall.
Key signals to watch for:
Bear scenario:
– Break below $9000 support level.
– A retest of $7400 level. If the price does not hold, BTC could further retrace to $6600-$6800 price range.
Bull scenario:
– $9000 holding as strong support. It needs a break above $9500 to indicate the finish of the corrective wave and the start of the next impulse wave.
