Tanya Abrosimova
Independent Analyst
- Bitcoin settles below $9,000, consolidating the gains of the previous week.
- Break above $9,050 will provide another upside stimulus.
Bitcoin movements are subdued during early Asian hours on Monday. The price tested area above pivotal $9,000 during the weekend, but the breakout proved to be short-lived. BTC/USD is trading at $8,800 with mild upward bias on intraday charts.
Bitcoin had the first back-to-back green week in 2018 with cumulative gains over 28%. This rally helped to compensate the loss of over 50% since the start of the year, though, the cryptocurrency #1 is still over 37% cheaper than it was in January.
The end of tax period in the US and the positioning after an extensive sell-off, intensified by technical factors are cited as the most obvious reasons for the rally. Crypto enthusiasts believe that the worst is over and Bitcoin is ready for new highs.
“Tax selling is over, larger hedge funds have entered the market with deep pockets and strong hands, all positive signs,” John Spallanzani from Miller Value Partners said, cited by Bloomberg.
Bitcoin price technical picture
On the daily chart, BTC/USD is sandwiched between 100 and 200-EMA at $9,050 and $8,700 respectively. These are the local resistance and support areas that need to be broken for the price to gain momentum. On the intraday level, BTC/USD continues to move within clearly defined upside channel, supported by 50-EMA (hourly chart), currently at $8,800. If the price dips below $8,800 and $8,700, the next pivot at $8,400 will come into focus with 200-EMA (hourly chart) marginally below. A sustained move above $9,050 will open the way towards the ultimate near-term goal at $9,500, provided that the overall market keeps growing.
BTC/USD, the hourly chart
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