Bitcoin Poised for A Fresh Rally in The Near Term

News / 02.03.2020

The bitcoin price has seen a steady decline over the past few weeks below the $9,000 support against the USD. All attempts made to bounce back failed and it settled below the 100 hourly simple moving average (SMA).

A recent low was formed around $8,403 and the price is currently making an upward correction. The number one crypto by market cap is currently trading above the $8,450 and $8,500 levels. Notably, there was a break above a key bearish trend line, with resistance near $8,575, on the BTC/USD pair hourly chart. This has paved way for more gains above the $8,600 level.

BTC is now trading close to the 50% Fib retracement level of the recent downtrend from the $8,821 high to $8,403 low. On the upside, there is an initial resistance near the $8,660 level and the 100 hourly SMA.

The 61.8% Fib retracement level of the recent drop from the $8,821 high to $8,403 low is also near the $8,660 level to act as resistance. A successful break above the $8,700 level and the 100 hourly SMA, could set the pace for a decent upward move.

The next major hurdle is near the $8,800 area, above which the bulls are likely to take control. In such bullish scenario, the price is likely to break above $9,000 or even $9,200, in the coming sessions.

Failure to break above the $8,700 level or the 100 hourly SMA might lead BTC to another bearish reaction. Two key supports are seen on the downside at $8,500 and $8,400. A successful break below the $8,403 low may perhaps lead the price towards the next set of important supports near $8,200 and $8,000.

Technical indicators also suggest that the hourly MACD for the BTC/USD pair is slowly moving in the bullish zone. The hourly RSI (Relative Strength Index) for the pair is back above the 50 level. Major support levels are at $8,500 and $8,400, whereas major resistance levels are also at $8,700, $8,800 and $9,000.

Featured image courtesy of Shutterstock. Source: Cryptopress.

Dacosta Osei-Tutu, a first degree holder in Nursing, who couples his Nursing career with blockchain blogging, has a great passion for the blockchain technology and aims to play a vital role in applying this revolutionary technology to disrupt the healthcare system in Africa.