Bitcoin [BTC] Price Analysis: Technicals Suggest a Reversal to $8,800 After The Surge

  • BTC/USD is changing hands at $9,293 amid a building bullish momentum.
  • Bitcoin is poised for further growth upwards in the short-term.

Bitcoin confirmed the surge over the weekend with an immediate reversal from the support established at $8,800. The correction to $8,800 followed Bitcoin’s formidable gains above $8,000 where it broke $8,400 critical resistance, in turn, igniting a momentum above $9,000. A high was formed at $9,386 (on Coinbase) which later resulted in the said correction.

BTC/USD 15-mins chart

Bitcoin price analysis chart
Chart source: Tradingview

The reversal from the recent support is currently trending upwards within an ascending channel. Besides, the price is above both the 21 Simple Moving Average (SMA0 and the 50 SMA 15-mins. The correction came close to break above the newly formed 2019 highs instead, a double-top pattern was formed.

The reaction to this pattern can be linked to the retracement from the intraday high on Monday. A double-top pattern occurrence in an up trending market usually interpreted as a bearish signal. However, the current retracement seems to have found cushioning above the 21SMA 15-minutes. BTC/USD is changing hands at $9,293 amid a building bullish momentum from the support.

Technically speaking, Bitcoin is poised for further growth upwards in the short-term. Signals from the Relative Strength Index (RSI) have a bullish bias. Besides, as long as the Bitcoin stays above the channel support and the 21 SMA support, a break above $9,400 is a definite move in the short-term.

Also Read: Bitcoin [BTC] Bears Seem Out-of-Sight as Analysts Predict Targets Above $13000

Slightly above the current value of BTC, $9,300 is the first hurdle. If Bitcoin manages to sustain growth towards $9,400, it will reignite gains heading to $9,800 – $10,000. However, the buying pressure at $9,500 must be cleared first.

On the downside, the 21 SMA 15-mins is key support currently at $9,250. The second support target is $9,200 coinciding with the 50 SMA 15-mins. Further, break down will find solace at $8,800, $8,400 and $8,000.

Bitcoin Key Technical Indicators

Double top pattern: Hints further breakdown from new 2019 highs.

RSI 15-mins: Suggest stronger uptrend towards $9,400 in the short-term.

Support 1: $9,200

Support 2: $8,800

Resistance 1: $9,300

Resistance 1: $9,400.

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