Bitcoin broke support of $8500 with strong Bearish Pressure after the market open today. The Bitcoin is now facing support at $7600 area and may push higher. Let’s check the Bitcoin Technical Analysis for more levels and insights.
March 9, 2020, | AtoZ Markets – Bitcoin has been impulsive with the up move breaking above $9000 area after a certain correction but failed to sustain it higher. The price of Bitcoin has recently declined towards $7700 area as the trading week started. As per current price action, there are chances that Bulls may try to fillup the Bearish gap in the coming days.
Bitcoin plunged around 10% recently while breaking below $8500 price area. The price has been defending the $8500 area as a strong support level where the Bulls rested. As the important level at $8500 already breached, further down move towards $7000 or lower is expected.
Bitcoin Broke Support but Bulls are Still Active
After the market opened today, the Bitcoin broke support with a big gap reached lower towards $7700 area. Recently, the price bounced from $7700 zone with a 4-hour Bullish pin bar which can lead to particular Bullish take over in the coming days.
Image: Bitcoin 4 Hour Chart
According to the 4-hour chart, the price of the Bitcoin is currently residing near $7900 area and trying to push lower. If the price can retrace 50% of the 4-hour pin bar, the Bullish pressure may continue to push higher towards $8500 in the coming days.
Besides, the dynamic level of 20 EMA is residing above the current price along with the Kijun line and the Tenkan line. As a result, the dynamic levels may pull the price higher as Mean Reversion. The Kijun and the Tenkan line may work as a confluence of the dynamic level of 20 EMA along the way.
Bitcoin Bulls Resting at $7500
According to the Daily chart, the price is currently trading at $7900 after Bitcoin broke support of $8500. After rejecting the $10,000 resistance area, Bears push the price down quite impulsively. The market is still quite Bearish, but if it manages to remain above $7500 area with a daily close, then absolute upward pressure may occur in the coming days.
Image: Bitcoin Daily Chart
Moreover, the dynamic level of 20 EMA, Tenkan and Kijun Line is residing above the current price area. Though the Chikou Span broke below the candles as well as the price below Kumo Cloud, Bears are quite strong to dominate further. On the other hand, the MACD Histogram is moving upwards but residing at the edge of 0.00 level. Histograms are showing a Bullish Squeeze currently which is forming a Bullish Continous Divergence along the way. So, for further upward pressure, Bitcoin must remain above $7500 area with a daily close for further up move in the coming days.
To conclude, Bitcoin residing above $7500 area has greater chance to push higher. Despite the recent Bearish momentum, Bulls are showing some activity near $7500.