Bitcoin Price Analysis: The price has retreated again - Where will it find support?
- Although bitcoin is trading higher on Friday the bulls cant sustain a move above 9K.
- The price has a big spike on the daily chart and now focus will be on support zones.
BTC/USD daily chart
The bitcoin bulls once again dragged the price through the 9K level once again on Friday. But once again the sellers came out in full force and the price is currently approx. 8,750.80 late in the US session. If the price closes near these levels, this will be the 3rd test above the psychological level in 3 days.
On a technical note, the price is trading above the 200 and 55 moving averages. This is a bullish sign and at some point, the price may come back and use one of them as a support level. The top of the triangle pattern could also be a support zone moving forward. When a chart pattern breaks the price often comes back to retest the pattern before the underlying move continues.
Looking at the relative strength index indicator, it seems like a pullback might be near as it is in an overbought position. This does not mean the rally is over but that in the short term the move is slightly overextended. It's clear that the bulls are in control of the underlying trend but it is interesting that the 9K level is such a barrier at the moment.
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Additional levels
Author
Rajan Dhall, MSTA
FX Daily
Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.
