Will Bitcoin Move Above $9,000 Once More?

Since the rapid decrease on May 10, which caused BTC to briefly reach a low of $8,117, the price has been gradually increasing. Bitcoin was rejected sharply at $9,150, which is both the 0.618 Fibonacci level of the entire decrease and the 200-hour moving average (MA). However, after dropping all the way to $8,200, the price has reversed its trend and gathered strength in order to make another attempt at moving higher.

The RSI has been generating bullish divergence and has moved above 50, a sign that the price is expected to move higher. If it does so, it is likely to reach the 0.786 Fib level at $9,450. This would still be considered a retracement in response to the decrease rather than the beginning of a new upward move. Lower time-frames also support this possibility since they show that an ascending triangle has been created. This is known as a bullish pattern that makes it more likely that the price will break out. A movement that travels the entire height of the pattern would take the price all the way to the next resistance area at $9,450.

Bitcoin’s Ascending Support Line

In the longer-term, we can see that the Bitcoin price has been following an ascending support line since reaching a bottom on March 13. A very interesting takeaway is that the previous movements above two major resistance levels found at $9,000 and $9,500, and the subsequent failure to sustain these higher prices, are now likely to act as resistance. Therefore, the Bitcoin price is expected to increase to around $9,500 before returning to validate the ascending support line and possibly the 200-day MA.

To conclude, the Bitcoin price seems to be gathering strength. Another upward move above the current resistance level is likely to take the price to $9,450, after which a corrective period is expected. For those interested in BeInCrypto’s previous Bitcoin analysis, click here.