The price of Bitcoin (BTC), the highest rated crypt currency by market capitalization, is acting within a narrow range, still hovering around USD 9,000. Meanwhile, we’re also seeing a decline in volume, along with an increasingly unstable stock market, which is likely to affect Bitcoin as well (read recent analysis here).
However, would a retreat to USD 7,700 be a bad cause for the markets or is it crucial to keep above USD 9,000 for any upward momentum?
Traders and investors should remember the summer of 2019. There was a massive recovery of Bitcoin to USD 14,000, which ended in a decline to USD 9,000. In the months that followed, the price stabilized at that support level for a significant period.
The area of USD 9,000 – 9,300 has been a substantial level of support where there have already been many significant rejections and support tests.
The fall in the stock market threatens the upward consolidation of Bitcoin’s price below USD 10,000
BTC/USD 1-day chart
Currently, the price of Bitcoin is also above this support level. In addition, there is still a support level in the area of USD 8,250-8,500.
On the other hand, the resistance zones are still clear: USD 10,100-10,500. As the resistance zone has been tested several times in the past year, another test of this resistance zone should end in a breakout.
Such a break above the resistance would probably trigger an acceleration and potentially a move of USD 1,000 or more.
The 4-hour chart shows a clear structure in which the USD 9,600 area is the current resistance zone, while the USD 9,175-9,225 area is the crucial support level.
In addition, the Bitcoin price has fallen from the $9,200 support level at the beginning of the week, as a fuse is shown at $8,900 on the chart. However, this drop-down menu was short-lived, as the Bitcoin Era price recovered to USD 9,600.
The previous support of USD 9,200 is being confirmed for support, which would accommodate a continuation of USD 9,600.
11.4 Million Bitcoin Remains a Long-Term Investment
As noted earlier in this article, the more often resistance is tested, the weaker it becomes as sellers run out. If the Bitcoin price stays above $9,200, a new resistance test of $9,600 must be performed and it will most likely end in a breakout.