- Bitcoin recently broke above $8,000 and approached $9,000 for the first time in 2019.
- The price is poised for further correction according to various technical indicators like RSI.
The cryptocurrency market appears to have entered a bull rally. Bitcoin has been the leader of the bullish rally. We have had up and downs since Bitcoin touched 2018 low close to $3,146, however, it is correct to say that the price has been forming higher highs and higher lows especially in April and May.
Bitcoin recently broke above $8,000 and approached $9,000 for the first time in 2019. There was a struggle around $8,000 following the reversal from $6,500 support. Following the consolidation above the 100 Simple Moving Average (SMA) 1-hour as well as the 50 SMA two days ago, BTC/USD spiked in an engulfing candle stepping above the 61.8% Fib retracement level between the last swing high at $8,944.7 and a swing low of $7,472.77.
The price formed a high at $8,944.7 before trending lower below $8,600. Increasing bearish trend touched the 100 SMA support above $8,400 before reversing the trend upwards to exchange hands currently at $8,551 at press time. The price is poised for further correction according to various technical indicators like the Relative Strength Index (RSI) which has revamped the direction upwards at 41.37. The MACD is in the negative with increasing divergence to the upside to show that the bulls are gaining traction steadily.
Correction above $8,600 broken support $8,600 will face resistance at the 50 SMA 1-hour. Further resistance will be encountered at $8,800 while the medium-term at $9,000 will see the price breakout towards $10,000 level.
BTC/USD 1-hour chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Why Solana, XRP, Dogecoin and BNB are crashing?
Solana (SOL), XRP, Dogecoin (DOGE) and Binance Coin (BNB) decline on Tuesday. Top altcoins ranked by market capitalization are in a downward trend, even though Bitcoin (BTC) continues to consolidate around the $95,000 level.
Bitcoin Price Forecast: BTC consolidates as options market awaits policy clarity
Bitcoin (BTC) has been consolidating between $94,000 and $100,000 for nearly two weeks, with reports from Bitfinex indicating increased macro-correlation and maturity as a risk asset.
Real-World Assets outperform the AI sector in the crypto market over the past month
Real-World Assets (RWAs) outperformed the Artificial Intelligence (AI) sector in the crypto market over the past month, with a weighted average gain of 15.6% in January.
Storj Price Forecast: Bulls aiming for double-digit gains
Storj (STORJ), an open-source platform that leverages the blockchain to provide end-to-end encrypted cloud storage services, continues to trade higher by 4.4%, around $0.39 on Tuesday after rallying 5% the previous day.
Bitcoin: BTC consolidates before a big move
Bitcoin price has been consolidating between $94,000 and $100,000 for the last ten days. US Bitcoin spot ETF data recorded a total net outflow of $650.80 million until Thursday.
The Best Brokers of the Year
SPONSORED Explore top-quality choices worldwide and locally. Compare key features like spreads, leverage, and platforms. Find the right broker for your needs, whether trading CFDs, Forex pairs like EUR/USD, or commodities like Gold.