Following our previous analysis and over the past week, we can see that there was not much price action around Bitcoin.
The coin is still hovering between the range of $9,400 to $9,800. However, following another bearish leg down, we saw Bitcoin got quickly bought around the $9,000 region. Looking on the daily chart, this, if doesn’t break down (below $9,000) had been forming a decent double bottom bullish formation.
Looking on the RSI: The significant momentum indicator had turned around on the 40-support level and now facing the 45-support turned resistance line, but still a little far away from the bullish area (above 50), will it maintain the supporting floor at 40?
Other bullish sign might be coming up from the Stochastic RSI oscillator which had made a cross-over after being inside the oversold territory for the whole past month. The oscillator is about to enter the bullish area.
From the fundamental side, the congress hearing of yesterday had passed without much action, and the world global economy is facing today one of it’s most critical days, with the rate decision, expecting a cut in the interest rates. The last can have an effect on the cryptocurrency markets for the longer term.
To sum it up, there are always two sides: While the support at $9000 seems strong and stiff, we can always go below it and break the above-mentioned double-bottom formation. For the short-term, Bitcoin couldn’t overcome the resistance line of the 50-moving average (marked purple, 4-hour chart) over the past ten days, and as of now, going for another shot.
Total Market Cap: $270 billion (Data by CoinGecko)
Bitcoin Market Cap: $174 billion
BTC Dominance Index: 64.6%
Key Levels to Watch
From the bullish side, Bitcoin is now facing the $9,800 – $10K resistance zone. In case of a break-up, the $10,5000 -$10,600 old support turned resistance area seems like a tough area combined of the 50-days moving average line. Further above is $10,800 before the $11,000 resistance.
From below, the nearest support area lies around $9550. Further below is the $9300 area, before the lowest point (double bottom at $9000) since this parabolic move had begun. Lower support areas in case of a breakdown could be found at the $8500 – $8800 region (along with the 100 days moving average line).
– Daily chart’s RSI: Discussed above.
– Trading Volume: As mentioned above, the trading volume had decreased to very low levels, that are far from the recent month average. The past three days saw low volume as of last March.