- Bitcoin gains break $9,400 resistance for the first time in 2020.
- The tug of war between the bulls and the bears catches momentum following a dive under $9,400.
Bitcoin price has corrected higher from $9,397 (opening value) on Wednesday to $9,431 (intraday high). The bullish strength emanates from the brief surge during the American session on Tuesday. For now, Bitcoin has a market value of $9,332 following a subtle 0.50% loss on the day.
Prior to the brief rally, BTC/USD dipped to lows close to $8,200. On meeting buyers waiting to buy low, Bitcoin surged incredibly adding more than $10,000 in less than three days. The stubborn resistance at $9,200 gave the bulls are a hard time on Tuesday. However, trading above the next hurdle at $9,400 has given bulls’ confidence that there is a potential of returning above the psychological $10,000 level.
Bitcoin technical analysis
From a technical point of view, Bitcoin’s surge has subsided and the incoming sessions are likely to be dominated by correction from the highs achieved at $9,448. As observed with the Relative Strength Index (RSI), the bears are gaining traction. Besides, the RSI is pointing sharply downwards after retreating below the 70 level.
BTC/USD 1-hour chart
However, all is not lost for the bulls according to the Moving Average Convergence Divergence (MACD). The indicator is sitting comfortably in the positive region, precisely at +110 after recovery from last week’s low at -90. The MACD also features a bullish cross to show that the trend is in favor of the bulls. Therefore, if Bitcoin bulls reclaim the position above $9,400, then they could end up opening the door for more gains past $9,500.
Bitcoin Key Levels
Spot rate: $9,347
Relative change: -47
Percentage change: -0.50%
Trend: Bearish
Volatility: High
Disclaimer
The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
