XBT/USD Analysis: Is This The Last Low Leg Before Bitcoin Rallies to $9k?
October 9th, 2019
Bitcoin not only slowed down the recovery move staged on Monday but also retreated slashing off the gains accrued. The remarkable correction from the recent support at $7,800 revived investors’ hopes of seeing the largest crypto between $9,000 and $10,000.
More bulls entered the market when the price stepped above the 50 Moving Average (MA) at $7,982. This elevated Bitcoin above the critical $8,000 as well as the 100 MA on the one-hour chart. Further correction north sent Bitcoin above $8,300 but dwindling buying pressure left $8,400 untested.
XBT/USD 4-hour chart
Meanwhile, Bitcoin has corrected towards $8,000 but is still holding ground within a short-term falling wedge pattern. Moreover, the downside is protected by the 100 MA currently at $8,086.5. An impending breakout above the wedge pattern could see XBT/USD rise towards the resistance at $8,400.
The recovering Relative Strength Index (RSI) signifies an improving technical picture. It appears that the drop from the highs this week was the final low before we see Bitcoin majestically explore the levels towards $9,000.
The rising volume coupled with an improving technical picture as observed with the moving average convergence divergence (MACD) clearly shows that the path of least resistance is upwards. Moreover, $8,100 is starting to come up as a viable support zone. Other key areas to look out for include $7,800, the triple-tested $7,700 and $7,500.
XBT Key Technical Analysis
Spot rate: $8,145
Support: $8,100, $7,800 and $7,700
Resistance: $8,200, $8,400 and $8,600