In today’s cryptocurrency news, we can see that the price of the most dominant coin has finally stabilized after days of consecutive losses. We can proudly say that Bitcoin strengthens and is now still above 35% in yearly gains but is still in a tricky position after tumbling down from $9,200 to $8,450 a couple of days ago.
Right now, bulls are defending the $8,600 level with strength. The market now needs to find a support area before the continuation of the bullish momentum is likely. But did the market find one already?
Now, we can see that the price of Bitcoin is rallying towards the $9,200 level which makes it a 43% rally in just a month. Still, the 0.618 to 0.65 Fibonacci level (the golden pocket ratio) provided resistance as Bitcoin strengthens.
Similar to this, the Bitcoin news now show that the $9,200 high used to be strong support during the summer of 2019 and can be classified as a major hurdle to take for Bitcoin. If the level breaks upwards, a healthy continuation of the bullish momentum is likely with targets around $10,000 and $11,000 on the table.
Additionally, the 4-hour timeframe is showing a significant rejection from the $9,200 level. This rejection was created through a weak breakout around the $9,000 level which caused the technicals around BTC to ‘trap’ traders in this direction.
However, Bitcoin strengthens and the chart shows that the dominant coin is currently stabilizing around the high that it established around January the 8th. This high is found at the $8,470 level.
What we can see is that numerous movements during the weekend created CME gaps and these gaps are likely to be filled soon after. Given that the dropdown occurred on Sunday, there is now a new gap created on the charts – defined between $8,765 and $8,865. And if you are asking if this is a signal that the price is going to move upwards, it doesn’t have to be like that. However, CME gaps are being used as a new indicator or narrative to trade.
The total market capitalization charts show that there is still a significant resistance at $250 billion. However, the upwards momentum could definitely bring BTC above $9,000 and the market near these levels.
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