Bitcoin price analysis: BTC/USD calm after a stormy night

  • Bitcoin broke past the resistance at $8,900 and even briefly stepped above $9,000.
  • A building bullish momentum above $8,300 has $8,400 in its focus.

BTC/USD currently hovers above $8,300 following a devastating plunge on Thursday evening (GMT) session. As predicted in the market updated yesterday, Bitcoin broke past the resistance at $8,900 and even briefly stepped above $9,000 where it formed a high at $9,090.94. However, the move might have been too ambitious for the largest cryptocurrency and remained unsupported, in turn, giving way for bears to enter and push for revenge. Or, it could have been traders taking profits in order to create fresh demand at a lower price.

Either way, the price plunged massively below a couple of key support levels at $8,600 and $8,400. BTC/USD extended the losses dropping under $8,100. Fortunately, the bulls re-emerged just above $8,000 stopping further declines. Bitcoin has since corrected above the 23.6% Fib retracement level taken between the last swing high of $9,090.94 and a swing of $8,000.

Meanwhile, the building bullish momentum above $8,300 has $8,400 in its focus. The buyers are supported by the rising Relative Strength Index (RSI) at 42.42. The indicator had explored the oversold region hitting levels around 25.00. Moreover, the Moving Average Convergence Divergence (MACD) is heading steadily upwards from lows around -124.44. The increasing divergence suggests that the bulls are gaining traction.

BTC/USD 1-hour chart

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