- Bitcoin price makes a comeback into the bullish face after testing the support at $8,200.
- A prominent resistance zone at $8,623 caps the upside while support is initially provided at $8,534.
Bitcoin price rallied incredibly this past weekend, correcting the negative retracement experienced last week. The fall from the resistance at $8,700 met immense buying pressure at $8,200. The bullish action pushed Bitcoin back into the green, however, gains past $8,700 failed to materialize.
According to Josh Rager, a popular analyst and trader on Twitter, as long as Bitcoin stays above $8,000, it is bullish. He adds that he intends to buy BTC in the event the crypto dips to $7,000 or below.
$BTC - nice start to open the week
— Josh Rager (@Josh_Rager) January 27, 2020
I'll continue to accumulate sats via trading at these ranges and will buy spot $7ks or below
The longer we range above $8k, the more bullish, imo
Also accumulating a few specific altcoins at these levels for longer term holds pic.twitter.com/CG58LgLX7c
Bitcoin confluence levels
At the time of writing, Bitcoin’s market value stands at $8,570. This follows a shallow, 0.26% retracement on the day that has jeopardized the support at $8,600. Although the trend is bearish, low volatility levels suggest that Bitcoin price actions will remain limited on either side.
The 4-hour chart shows Bitcoin price holding above the 50 SMA and the 100 SMA. The RSI on the same chart also shows that bears are slowly gaining traction.
BTC/USD 4-hour chart
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The confluence tool places Bitcoin between two prominent support and resistance levels. The upside is limited at $8,623 (buyer congestion zone). The zone is home to the 38.2% Fibo one-week, the Bollinger Band 15-minutes lower, the previous high one-day and the SMA 50 15-mins indicators among others. A break past this zone could blast Bitcoin directly past the psychological hurdles at $9,000 and $9,200.
On the downside, the most prominent support is observed at $8,534. It the first support as well as is highlighted by the 23.6% Fibo one-day and the SMA 100 4-hour. Below this zone, Bitcoin is lacking formidable support areas. Therefore, bulls should be careful to keep the price above $8,600 and focus on the two key levels, $9,000 and $9,200.
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