The jump over the USD 9,050 mark
Previously, the price had dropped to the 38.2% Fibonacci retracement level ($7,700), so the 1.382% extension was the target to reach ($9,200), a range in which we found strong resistance and bearish pressure, as expected.It would be much more positive if the price managed to stay above the 20-period exponential moving average ($8,800). All in all, the bulls are showing the first signs of fatigue and Bitcoin should break the resistance of $9,200 with strong volume in order to break the rising wedge pattern and continue the rally. However, a bearish wedge break ($8,600) could mean a reversal of the trend.
At the support points in the chart, we can see a good buying impulse in the volume profile each time the price touches the upward direction of the wedge. However, the RSI remained in the over-bought territory for a long time. The bears slowly noticed the weakness of the buyers and managed to shake the Bitcoin price with a significant jump on this last candle.At the moment the price is struggling to keep up with the rising wedge support, so it will be crucial for the candle to close above $8,600 in the next few hours.
With the jump over the USD 9,050 mark, Bitcoin reached a high for several months. CryptoDude stated in a new tweet before the sell-off that USD 9,080 is a critical level. He explained that if Bitcoin manages to stay above this key resistance on the weekly chart, a macro reversal could occur. This opportunity seems to have been missed with the sell-off.
Author : Collin Brown