- 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
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