Bitcoin price is approaching the potential reversal zone while heading lower after rejecting the $10,500 area earlier. The price may push higher as it reaches the $9000 area. Let’s check Bitcoin technical analysis for more levels and insights.
February 26, 2020, | AtoZMarkets – Bitcoin has been impulsive and non-volatile with the recent Bearish pressure, which is leading the price towards $9000 area. After the price rejected from $10,500 area, the Bearish impulsive pressure has been quite consistent despite the corrections around the $9500 area.
Most of the cryptocurrencies, including Ripple, Ethereum, Litecoin, and Cardano has seen a 10% fall recently. Despite having struggling equity markets and a global economic crisis due to the Coronavirus issue, investors are currently not diverting towards the crypto market as expected.
Despite the recent Bearish pressure, Bitcoin may regain certain momentum as the Corona issue does not develop in the coming days. According to a report, Lebanese people are using Bitcoin and other cryptocurrencies to move funds in the country due to the worst economic and financial crisis. Regardless of the recent fall of 3% in Bitcoin, there are certain Bullish support areas along the way down, which may hold the Bitcoin price higher in the future.
$9000 may act as a potential reversal zone
Bitcoin is heading lower towards $9000 area with non-volatile impulsive pressure after the $9500 support area broken below. As the price rejected from $10,500 area, the impulsive bearish pressure seemed unstoppable. Recent break below indecisive $9500 area, lead to further weakness of the Bullish sentiment in the process.
image: Bitcoin 4-Hour Chart
According to the 4-hour chart, the price is moving lower below the $9500 and has formed Bullish Divergence along the way. The price bounced from the $9500 area for several periods but could not sustain Bullish momentum above it as expected. As a result, currently, the price is residing near to the $9000 support area, from where if it maintains momentum. Traders may expect further up move to occur in the process.
Bitcoin price may rally after forming a bullish divergence
As the price develops Bullish Divergence, there is particular Bullish sentiment in the making. So, as per current price action, the price must reside above $9000 to empower further Bullish pressure. Though current pressure is downward impulsive, any firm Bullish counter may lead to positive upward pressure. As a result, it may influence the price higher again towards $9500 or even $10,000 in the coming days.
To conclude, Bitcoin residing above $9000 area with a daily close indicates the sustainability of further up move. Though the current pressure is Bearish, being above $9000 with a daily close will mean Bullish active intervention.