Bitcoin – Exposed to corrections; bias cautiously bullish

Bitcoin, Daily and Weekly

For the past two days, Bitcoin has been consolidating gains seen during January in a  a safe haven play on rising concerns about the US-China trade war, geopolitical tensions and Iran sanctions, but also following the launch of options on the CME Globex.

Bitcoin staged a stunning upside reversal around the $6,400- $6,800 support area a week ago, with the price surging back above the 200-day Simple Moving average and towards two-month highs.

Currently however, sellers are pushing for a recoil below the 61.8% Fibonacci of $8,562 of the downleg from $9,904 to $6,407, a break of which could see the retest of the $8,148 barrier, which reflects the 50% Fibonacci level. Particularly if the 50% Fibonacci does not hold and sellers move below it, then the $8,000 number could come back into play.

However, moving higher, above the psychological resistance at $9,000, could next captivate trader’s attention and trigger another bullish action towards $9,570 – $9,904, i.e. the October-November upswings.

Still, with the RSI close to overbought waters,as the indicator moves softly towards its 70 overbought mark, downside corrections cannot be ruled out in the near term. On the contrary, MACD lines keep gaining ground in the positive territory. If MACD and RSI keep gaining ground in the positive territory, the price may continue to head higher.