- Bitcoin returns into the $8,000 range after zooming to new January high at $9,184.
- Sideways trading between $8,500 and $8,750 is likely to take precedence in the near term.
Bitcoin led the cryptocurrency market on Sunday in an unexpected brief rally above the coveted $9,000 for the first time in 2020. The gains extended toward $9,000 but the high achieved was $9,184.
Unfortunately, a sharp reversal took place on the same day, pushing Bitcoin remarkably under $9,000. The tentative support at $8,750 did little to cushion BTC against the fall. Instead, Bitcoin extended the losses below the 50 SMA on the 4-hour chart and even tested the next support target at $8,500.
At the time of writing, a shallow recovery has occurred, pulling BTC above $8,600. BTC/USD is teetering at $8,647 and facing growing resistance. Correction towards $9,000 will not come easily based on the high concentration of sellers at $8,750. Besides, Bitcoin must fight to reclaim its position above the broken trendline support.
The Relative Strength Index (RSI), shows that momentum northwards is likely to stall. In other words, the sideways motion suggests the price is likely to range between $8,750 and $8,500 in the near term. Apart from the support at $8,500, other support levels include $8,250, $8,000 and $7,750.
BTC/USD 1-hour chart
-637150840082047981.png)
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Vitalik Buterin slams controversial gambling project ZKasino following scam allegations
Ethereum founder Vitalik Buterin took to Warpcaster, a new type of social network, to condemn ZKasino, a decentralized gambling platform based on Layer 2 Ethereum protocol zkSync.
Starknet jumps 2% after notice inviting specific groups to claim STRK airdrop
Starknet Foundation addressed the groups within the STRK community that were unable to receive the token’s airdrop during the first round. The Layer 2 chain organized an airdrop event in February.
XRP price capped at $0.55 despite retail holdings nearing all-time highs
Ripple price (XRP) failed to break resistance at $0.55 early Wednesday as traders continue to digest Ripple’s recent response to the Securities and Exchange Commission’s (SEC) allegations of illegally selling XRP as a security.
Binance founder Changpeng Zhao could face three-year jail time
US prosecutors are requesting Binance founder and former CEO Changpeng Zhao (CZ) to serve a three-year jail time, according to a Reuters report published Wednesday.
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?