Bitcoin price is moving higher from the $8500 support area. Therefore, it is likely that Bitcoin will move up towards $9500 in the coming days. Despite the recent downturn, the Bitcoin Bulls are quite active to regain momentum. Let’s check Bitcoin Technical Analysis for more levels and insights.
March 03, 2020, | AtoZ Markets – After the long bullish rally, Bitcoin moved lower with an impulsive bearish pressure and broke below the $9500 area. However, the bearish pressure started to become weaker as the price approached the $8500 levels. After a certain correction, BTC price managed to have a daily close above the $8500 level, and it is likely that it will continue higher in the coming days.
Bitcoin Price Fundamental Highlights
There is nothing that can say that Bitcoin is a safe haven asset. However, during the last week’s sell-off on most of the major stock indices and safe-haven Gold, Bitcoin held its position strongly before moving higher. Therefore, it is likely that investors are considering Bitcoin as an alternative to global stocks, or they are considering the Bitcoin to hedge their position. The global impact of COVIT-19 has been increased among other countries besides China.
Overall, central banks are giving dovish tone, and most of the major central banks are planning to cut rates. Chicago Mercantile Exchange’s on the Fed’s benchmark interest rate shows that there is a 100% chance that FED will go for a rate cut. Therefore, the global economic slowdown, along with the effect of COVIT-19 may encourage investors to consider Bitcoin as an alternative source of investment.
Bitcoin is Getting Support from Dynamic Levels
After the massive bearish pressure, Bitcoin is gaining its momentum as soon as it rejected the $8500 area.
Image: Bitcoin H1 Chart
According to the 1hour chart, Bitcoin managed to stay above the dynamic level of 20 EMA, Tenkan sen and Kijun Sen for more than 14 hours. Currently, the price is facing a short- term bearish pressure below to dynamic levels. As the price got rejected from the $8500 support levels, any bullish H1 candle close above the 20 EMA may create a bullish sentiment. Moreover, it is important to see how price reacts to the $8954 area as it is a near term resistance level.
Bitcoin Price May Spike Towards $9500 Area
On the Daily chart, Bitcoin became very corrective as soon as it reaches the $8500 level. After two indecisive days, the price managed to have a strong bullish daily candle. Moreover, the dynamic levels are at the $9500 area. Therefore, the price might face a gravitational force towards dynamic levels.
The MACD is still bearish, but the strength of bears is decreasing. Therefore, buyers’ intervention may create a bullish zone in the MACD. Overall, the bullish sentiment will prevail as long as the price is above the Senkou Span A.
To conclude, Bitcoin price has recovered from the support at the $8500 area. Moreover, it has a confluence of support from dynamic and horizontal levels. Buyers managed to have a daily close above $8500 area. The current bullish pressure may push the price towards $9500 area.