Bitcoin price rejected the $8500 support area currently going through a correction. However, the recent price action suggests that the BTC may test the $8500 area before testing further highs. Let’s check technical analysis for more levels and insights.
March 04, 2020, | AtoZ Markets – Despite the impulsive bearish pressure in the Bitcoin price from the $10,000 levels, the overall sentiment is still bullish. Moreover, bears became weaker as soon as the price approached the $8500 support level. As Bitcoin managed to have a daily close above the $8500 support levels, further upside pressure is expected after a certain amount of correction.
Bitcoin Hashing Power May Support Buyers
Last week, the average hashing power of Bitcoin has reached a new high of around 117.5 exahashes per second (EH/s). The hashing power is up by 5.4% from the beginning of January 28. Therefore, Bitcoin mining difficulty may increase by 2.15% due to the rise of hashing power, as mentioned by BTC.com.
The coronavirus outbreak forced many businesses from China to hold activities. Later on, some major Chinese miner manufacturers have resumed shipments over the past few weeks. Some Bitcoin analysts believe that bitcoin’s hash rate may move towards 130 EH/s in the next two months before halving. Moreover, after halving Bitcoin may move roughly 10 percent to the upside.
However, it is not the right time to say that these mining equipment manufacturers have resumed the production as it was prior to the virus outbreak.
Bitcoin Price has Confluence Support from Dynamic Levels
After a massive bearish pressure, Bitcoin is gaining its momentum as soon as it rejected the $8500 area.
According to the 1-hour chart, Bitcoin started to remain stable above the dynamic level of 20 EMA, Tenkan sen and Kijun Sen. After a short- term bearish pressure the price is not moving upside of dynamic levels. As the price is backed by a strong bullish daily close from the $8500 support levels, any bearish rejection on the H1 candle may create a bullish sentiment.
Bitcoin Price May Touch the $9500 Area
On the Daily chart, Bitcoin has created an inside bar where the mother is the buyers’ intervention from $8500 level. As the price failed to create a new high, it is likely that the price will revisit the $8500 levels again before moving higher towards the $9500 area.
On the other hand, the MACD is still bearish. However, the strength of bears is decreasing, indicating that it may create a bullish zone in the MACD. Overall, the bullish sentiment will prevail as long as the price is above $8500 support levels.
To conclude, the Bitcoin strongly recovered from the support area as buyers managed to have a daily close above $8500 area. However, as the price became very corrective, bitcoin may test the $8500 levels again before moving towards the $9500 resistance level.