Bull Resistance? Bitcoin Price Needs Break Above $9K

Bitcoin bulls risk losing control unless prices see a convincing break above the $9,000 mark soon, according to the technical charts.

Of concern is that the cryptocurrency has failed twice to hold above $8,900, as indicated by CoinDesks's Bitcoin Price Index (BPI). Further, bitcoin also clocked a six-day high of $9,070.64 on Feb. 10, but quickly fell back below the key psychological level of $9,000.

Thus, the area around the $9,000 mark has been established as a point of stiff resistance, as is being discussed by the investor community.

As of writing, bitcoin's global average price on the BPI is at $8,390. The cryptocurrency has appreciated by at least 40 percent from the recent lows below $6,000. However, the bulls are still not out of the woods and need to move prices quickly above $9,000 or the bears could once more exert their influence.

That said, exhaustion around $9,000 has neutralized the immediate outlook and bearish revival is seen only below Feb. 2 low of $7,845.

Daily chart: Stuck in a falling channel

The above chart (prices as per Coinbase) shows:

• BTC is trapped inside a falling channel marked by trendlines representing lower highs and lower lows.
• Both the bullish 5-day moving average (MA) and 10-day MA crossover and an upside break of the descending trendline on the RSI favor the upside.
• Still, the cryptocurrency faced rejection at the descending trendline/falling channel hurdle earlier today and is now changing hands below $8,500.

Daily chart: Long-term momentum studies turn bearish

As discussed yesterday, the weekly chart is biased towards the bears. Thus, the bulls need progress soon,via a quick move above $9,000.

View

A close above $9,000 would confirm an upside break of the falling channel, meaning bearish-to-bullish trend change. It would also add credence to the bullish 5-day MA and 10-day MA crossover and open doors for a move higher to $11,500–$11,800.

However, gains above $10,000 could be short-lived as detailed in the previous post.

On the other hand, a close below $7,851 (Nov. 2 low) would signal the corrective rally from Feb. 6 low has ended and would encourage stronger sell-off to $5,000.

Disclosure: CoinDesk is a subsidiary of Digital Currency Group, which has an ownership stake in Coinbase.

Arrow and target via Shutterstock