Bitcoin price analysis: BTC/USD broke above $9,000, but retreated lacking fresh catalysts
|- Bitcoin is up 22% from Sunday's low, but $9,000 is still unbroken.
- The upside is caused by technical factors coupled with positive fundamental news.
Bitcoin price broke above $9,000 for a short moment but retreated quickly. Currently, BTC/USD is trading at $8,953, mostly unchanged since the start of the day, while it gained over 4% during the latest 24 hours.
There are two main factors behind the forceful bullish run of the last three days. The first one is technical. Market overreacted to the yet unconfirmed speculations about Twitter plans to ban cryptocurrency advertising. Bitcoin dipped to $7,318 on Sunday, before new buyers came in and started to squeeze weak shorts out of the market.
The second reason is fundamental. The news that Mark Carney, the head of the Financial Stability Board (FSB), did not see the risks coming from cryptocurrencies, was interpreted as a bullish signal, intensified by G20 decision classify cryptos as assets. Bitcoin overreacted once again and gained 22% from Sunday's low and broke above the long-term downside trendline, which is a positive technical development.
Bitcoin price technical picture
The short-term technical picture remains bullish as long as BTC/USD stays above the trendline (currently at $8,600), but the further upside is not warranted unless the price moves above $9,200 (200-DMA) and at $9,400 (50-DMA). On the downside, the support levels are produced by $8,600 and $8,315 (Monday's low).
BTC/USD, the daily chart
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