Bitcoin Mounts Recovery But it Seems Bears Remain Dominant

News / 28.02.2020

At the moment, the BTC/USD pair is recovering from its weekly low at $8,512. Nevertheless, Bitcoin price is encountering several major barriers close to $9k and it might return to the downside.

Within the current week, there has been a powerful downward move under $9k and $8.8k. The pair even continued under the support at $8,680 and was well-established under the 100 hourly SMA.

The pair was able to form a fresh low close to $8,512 and it is now correcting losses. A look at the pair’s hourly chart reveals the formation of several barriers close to $9k and $9.2k. A crucial observation on the same chart is the formation of a selling flag with support close to $8,735.

The initial major barrier is close to $9k. The ability of the buyers to secure momentum over $9k could lead to the immediate crucial breakout area close to $9.2k and the 100 hourly SMA. Hence, the price needs to surge past $9k and $9.2k to begin a new increase ahead.

The failure to retrace over barriers at $9k and $9.2k could lead to more downsides. The first support is close to a flag trend line at $8,735.

If the pair breaks under the flag support could pave the way for a new decline under $8.7k and $8.6k. If the decline happens, the pair might extend the downside move under the $8,512 swing low.

The immediate key support and buy territory is close to $8.2k. As for the medium term, there is likelihood that the pair would bounce back if it does not close under $8k.

Featured image courtesy of Wallpaper Abyss. Source: Crytopress.

Sudarshan M is a long time crypto-enthusiast. Pulled in by bitcoin early on, it did not take long for Sudarshan to divert all of his academic attention from business studies to blockchain by doing his Masters and eventually pursuing his PhD in the subject.