Bitcoin Recovers from Its Weekly Low

News / 28.02.2020

Currently, the BTC/USD pair is moving from its weekly drop at $8512. However, the Bitcoin price faces many significant barriers close to $9k, and it might turn to the downside.

This week, a powerful downward move to the downside under $9k and $8.8k occurred. The pair even continued under the support at $8680 and established under the 100 hourly SMA. The pair then formed a new low close to $8512, and it is currently correcting losses.

A Look at the BTC/USD Hourly Chart

The BTC/USD hourly chart shows the formation of two barriers close to $9k and $9.2k. Another critical observation on the same chart is forming a selling flag with support close to $8735. The initial significant barrier is close to $9k.

The buyers’ ability to have momentum over $9k could result in an immediate key breakout area close to $9.2k and the 100 hourly SMA. Therefore, the price needs to incline over $9k and $9.2k to initiate a move to the upside.

If the pair fails to move over the barriers at $9k and $9.2k, more downsides will occur. The first support is close to a flag trend line at $8735, and if the pair breaks under it, a decline under $8.7k and $8.6k will occur. If a drop happens, the pair might extend to under the $8512 swing low.

The immediate essential support and buy territory are near $8.2k. If the price does not close under the $8k, it might bounce back.

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.