Bitcoin price analysis: Bounces-off two-week lows, $ 9000 back on sight?
- Bitcoin looks to regain the 9k handle, as the buyers return on Saturday.
- But recovery appears capped while below 38.2% Fib level on hourly sticks.
Bitcoin (BTC/USD), the most favorite cryptocurrency, is on a gradual rise this Saturday, reversing a dip to two-week lows of 8,668.60. Despite the profit-taking rally, the coin remains below the 9k level, losing nearly 4% over the last 24 hours. At the press time, the No. 1 coin trades near 8,850/60 region, up over 1% on the day while it's market capitalization stands at $ 160.12 billion.
From the near-term technical perspective, given that the first coin has managed to sustain the comeback so far, the bulls are seen struggling to overcome the 38.2% Fibonacci Retracement (Fib) of the recent sell-off to two-week lows, located at 8,883. The hourly Relative Strength Index (RSI), which rests in the overbought territory above 90.0, also suggests that the bulls are having a tough time extending the bounce. Only a sustained breakthrough above the last could confirm a bullish reversal, with the next upside barrier seen at 9k mark, above which the next upside target lies near 9,030/40 region, the confluence of the 61.8% Fib and bearish 100-hourly Simple Moving Average (HMA).
On the flip side, the downside momentum could resume if the price breaches the 21-HMA support at 8,820, with the next support eyed at the 8,800 level, where the 23.6% Fib level coincides. Should the bulls fail to defend the last-mentioned round number, the two-week lows will be back on the sellers’ radar.
BTC/USD 1-hour chart
BTC/USD Levels to watch
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
