Share this article
Bitcoin Bulls Seek Stronger Move After Bounce to $8.8K Loses Momentum
Bitcoin continues to defend key support, but a sustained move above $8,750 is needed to revive the short-term bull case.
Updated Sep 14, 2021, 1:51 p.m. Published Jan 22, 2020, 10:29 a.m.
Make us preferred on Google
View
- Bitcoin needs to see a sustained move above $8,750 to confirm an end of the price pullback from Sunday's high near $9,200.
- A strong move past that level will likely fuel a re-test of $9,200. That looks likely, with the longer duration charts flashing bullish signals.
- A break below key support near $8,460 would open the door for a drop back to $8,200-$8,000.
Bitcoin's bounce from key price support is struggling to gather traction.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
The top cryptocurrency by market value made a reversal from levels near $8,461 (Sunday's low) during Tuesday's U.S. trading hours, rising to a high of $8,793 earlier today, according to CoinDesk's Bitcoin Price Index.
The bulls have defended the $8,460 level multiple times since late on Sunday. Tuesday's bounce was the third successful defense of the former resistance-turned-support of the last 72 hours (bitcoin had dropped back at the same level on Jan. 8).
This morning's spike to $8,793 in the Asian trading hours was short-lived, and the cryptocurrency is currently trading near $8,630. Similar price action has been seen in the last 48 hours.
Essentially, bitcoin is generally trapped in the $8,460-$8,750 trading range and only a sustained break above $8,750 would imply bull revival.
Hourly chart
The range-bound trading is taking place following a convincing downside breach of the ascending trendline over the weekend.
An hourly close below $8,461 would confirm range breakdown and signal a continuation of the pullback from $9,188, opening the door to support at $8,200 (horizontal line) and possibly to $8,000.
On the other hand, an hourly close above $8,750 would confirm an end of the pullback and could fuel a rise to recent highs near $9,200.
An upwards move looks the more likely path ahead, as the longer duration charts are reporting bullish conditions.
Daily and 4-hour charts
Bitcoin created a bullish outside-day candle on Tuesday, which occurs when prices close the day on a positive note, engulfing preceding day's trading range. The candle is widely considered as an early warning of an impending bullish move.
Further, the higher lows on the 4-hour chart's MACD are signaling a weakening of bearish momentum.
The weekly chart, too, is indicating the path of least resistance is to the higher side.
Disclosure: The author holds no cryptocurrency assets at the time of writing.
More For You
Bitcoin could fall to $10,000 as U.S. recession risk builds, Mike McGlone says
McGlone links bitcoin’s downturn to record U.S. market cap-to-GDP levels, low equity volatility and rising gold prices, warning of potential contagion into stocks.
What to know:
- Bloomberg Intelligence strategist Mike McGlone warns that collapsing crypto prices and a potential bitcoin slide toward $10,000 could signal mounting financial stress and foreshadow a U.S. recession.
- McGlone argues the post-2008 "buy the dip" era may be ending as crypto weakens, stock market valuations sit near century highs relative to GDP, and equity volatility remains unusually low.
- Market analyst Jason Fernandes counters that a drop to $10,000 bitcoin would likely require a severe systemic shock and recession, calling such an outcome a low-probability tail risk compared with a milder reset or consolidation.
Top Stories
