After bouncing from the $8500 support area, Bitcoin price moved with an impulsive bullish pressure towards the upside. Therefore, the next target for the bulls would be $9500 resistance. Let’s check technical analysis for more levels and insights.
March 05, 2020, | AtoZ Markets – After the impulsive bearish pressure from the $10,000 levels to the $8500 support levels Bitcoin started to move upside after a correction. Sellers became weaker as soon as the price approached the $8500 and Bitcoin managed to have a daily close above the $8500 support levels.
British Governor Talks on Bitcoin
Andrew Bailey made a little change in the Bitcoins price from the last two years. After taking a position as Governor of the Bank of England, Bailey commented on the bitcoin that it would not provide any monetary benefit.
“If you want to buy Bitcoin, be prepared to lose all your money.”
Besides, the cushion about the further investment he made a statement regarding people who already bought the digital coins:
“It has no intrinsic value. It may have extrinsic value, but it has no intrinsic value.”
He concludes by saying that Bitcoin gained nothing to meet the expectation of some people thought it would.
During the hearing, Bailey also expressed his opinion about Facebook’s Libra stablecoin project. He said that Facebook’s previous handling of personal data would make the current adoption of libra coin questionable.
Earlier, Bailey had given warnings about Bitcoin on December 14, 2017. However, there was no negative impact on the price during the statement.
Bitcoin Moved Upside from Confluence Supports
Bitcoin gained its momentum as soon as it rejected the $8500 area with an impulsive bullish daily close. After a certain amount of correction currently, the price is moving upside with impulsive bullish pressure.
According to the 1-hour chart, Bitcoin managed to have a candle close above the dynamic level of 20 EMA, Tenkan sen and Kijun Sen. Therefore, the price moved upside with a new higher high. As long as the price is above dynamic levels, the bullish price action is more likely to work.
Bitcoin May Reach the $9500 Area
On the Daily chart, Bitcoin moved with a corrective momentum after the inside bar candle formation. Later on, the price moved higher above the highs of the mother bar. As the current bullish structure is strong, Bitcoin may reach the $9500 within this week.
If the daily candle closes above the $9100, the bullish sentiment may increase more. However, the dynamic level of 20 EMA is currently above the price. Therefore, the price may face some correction as soon as it touches the 20 EMA.
On the other hand, the strength of bears within MACD is squeezing higher, which indicates that the price may create a bullish zone in the MACD.
To conclude, the Bitcoin price is moving higher after having a daily close above $8500 area. However, the coin may face some correction from the dynamic level before reaching $9500.