Article by Omkar Godbole CoinDesk
Bitcoin (BTC) looks set to extend its two-day winning streak and could soon test the $9,000 mark, technical analysis suggests.
Over the last two days, bitcoin has retraced close to 30 percent of the recent drop from $11,660 (March 5 high) to $7,335 (March 18 high). Further, the cryptocurrency also witnessed an upside break of the key descending trendline yesterday. So, it appears the world’s largest cryptocurrency by market capitalization has bottomed out for the short-term.
However, despite the bull flag breakout, the cryptocurrency has been restricted to a narrow range of $8,200-$8,700 for the better part of the last 20 hours.
Trading volume in the last 48 hours has stayed around the monthly average of $6.64 billion, as per CoinMarketCap, which is a slight cause for concern. A big rise in the trading volumes would have meant the recovery in BTC is backed by strong hands.
Still, the price chart analysis indicates BTC is possibly a building base around $8,200 for the next move higher towards $9,000.
As of writing, the cryptocurrency is trading at $8,448, according to CoinDesk’s Bitcoin Price Index(BPI). The global average price, as calculated by CoinMarketCap stands at $8,498 – up 2.8 percent in the last 24 hours.
The above chart (prices as per Bitfinex) shows:
- Short-term bulls reversal as indicated by Sunday’s bullish hammer and Monday’s positive follow-through.
- BTC closed (as per UTC) above the 10-day moving average (MA) on Monday, indicating scope for short-term consolidation with a positive bias.
- Both the 5-day MA and 10-day MA have bottomed out (shed bearish bias).
- Major resistance is seen at $9,157 (200-day moving average) and major support is seen at $7,665 (March 15 low) and $7,240 (March 18 low).
The bullish RSI divergence followed by an upside break of the falling wedge further adds credence to the short-term bullish reversal as seen in the daily chart. Also, the 10-MA is biased to the bulls.
- BTC will likely test $9,000 (psychological hurdle) and $9,157 (200-day MA) in the next 24-36 hours.
- A daily close above the 200-day MA would open the doors for $10,000. Currently, further gains are ruled out, as suggested by the bearish weekly chart.
- On the downside, a move back inside the falling wedge would signal bullish invalidation.
- A daily close (as per UTC) below $7,240 (March 18 low) would revive the bearish outlook.
The Small Print
CryptoClarified has a responsibility to our readers and subscribers. We will not publish, promote or cover any projects that do not pass our team’s due diligence. Please do not take this personally if your project is not approved. It does not mean that the project doesn’t have potential, but we do have a responsibility to our readers and subscribers.
This also does not mean that any project that is approved, or that we do decide to cover is destined for success. Anything can happen in cryptocurrency, but we do our best to cover projects that do have potential and that we believe would be of benefit to our readers.
It is important to understand that not every project that is approved, or that we do decide to cover is destined for success. Past success with other campaigns does not guarantee success with your campaign. We do our best to cover projects that do have potential and that we believe would be of benefit to our readers.
For Google, Facebook and Twitter Paid promotional services we require images that have as little text as possible. We agree to carry out any services in which we are paid, but cannot guarantee that all Facebook campaigns will be approved. For campaigns that are not approved, we will continue to edit until approved. Due to Facebook’s recent ban on cryptocurrency related promoted content, it may take longer than expected. For Ads that are unable to run do to banner image sent, article title or for any other reason, you will not lose the 1.5 ETH paid. It can be applied toward a second article or any other service.
The information provided on this website does not constitute investment advice, financial advice, trading advice or any other sort of advice and you should not treat any of the website’s content as such. CryptoClarified does not recommend that any cryptocurrency, game or token should be bought, sold or held by you and nothing on this website should be taken as an offer to buy, sell or hold a cryptocurrency, token, game or anything similar. Do conduct your own due diligence and consult your financial advisory before making any investment decision.
Accuracy of Information:
CryptoCurrency Clarified will strive to ensure accuracy of information listed on this website although it will not hold any responsibility for any missing or wrong information. You understand that you are using any and all information available here AT YOUR OWN RISK.
The price of Bitcoin and other cryptocurrencies are highly volatile. It is common for prices to increase or decrease by over 20–100% in some coins in a single day. Although this could mean the potential for huge profits, this also means the potential for huge losses. The same goes for CryptoCollectible games which can be wildly speculative. DO NOT INVEST ALL YOUR MONEY IN CRYPTOCURRENCIES. Only invest money which you are willing to lose.
Cryptocurrency trading may not be suitable for all users of this website. Anyone looking to invest in cryptocurrencies should consult a fully qualified independent professional financial advisor.