Bitcoin rejecting the $8500 support area bitcoin continued to move higher with an impulsive bullish pressure. As it had a daily close above $9000, Bitcoin may reach $9500 soon and even $10,000. Let’s check Bitcoin Technical Analysis for more levels and insights.
March 06, 2020, | AtoZ Markets – Bitcoin was very corrective at $8500 support area earlier as sellers became weaker. Therefore, buyers were able to push the price up with a daily candle close above the $9000 levels yesterday.
Coronavirus Impact on Bitcoin
Over eleven years, Bitcoin has transitioned from an unknown world to a safe haven nature of an asset. However, cryptocurrencies remains a speculative asset in developed countries. Therefore, BTC does not work as a national currency in the US.
On the other hand, Venezuela, a failed economy with hyperinflation, understood the actual purpose of Bitcoin. Its residents now use cryptocurrencies through a medium of exchange and store-of-value as an alternative of fiat.
Therefore, many analysts believe the Bitcoin price does not need to wait for government authorisation to settle in the market. According to analysts from Fundstrat’s, Bitcoin could reach $500,000 in the long-term with the increase of users.
On the other hand, JPMorgan’s CEO claimed that Bitcoin might dominate over fiat currencies soon. The current global slowdown due to coronavirus has forced central banks to cut their rates. Therefore, people may rely on alternative currencies as the people of Venezuela are getting used to it.
Bitcoin May Face a Minor Resistance
Bitcoin has got a bullish momentum as soon as it rejected the $8500 area with a bullish daily close. After an inside bar candle formation on the daily chart, Bitcoin managed to create a new higher high above $9000 levels.
Image: Bitcoin H1 Chart
According to the 1hour chart, Bitcoin is moving upside with an impulsive non- volatile bullish trend. After creating a higher high at $9165, Bitcoin moved lower below dynamic levels. However, as the bullish momentum is powerful, Bitcoin managed to have a candle close above dynamic levels. As the bullish price action is intense, any further bearish rejection from 20 EMA may increase the Bullish possibility.
Can Bitcoin Reach the $10,000 Level?
Bitcoin has a daily close above the $9000 levels and currently facing a minor resistance from the dynamic level of 20 EMA. Therefore, the price may face some correction, if it fails to have a daily close above the 20 EMA.
Moreover, MACD is decreasing with the possibility to create a bullish zone. Overall, the impulsive bullish price action with a daily close above $9500 resistance may force the price to test $10,000 level soon.
To conclude, the Bitcoin may reach the $9500 area in the coming days. Moreover, a bullish daily close above the $9500 may bring the price more up towards $10,000 regions.