Bitcoin continued on its bull run from earlier this week[1] and managed to return to the pivotal $9,000 level this morning. For the past two days, BTC/USD retracted about 30% of the recent price drop from a high of $11,660[2] (March 5).
Furthermore, Twitter CEO Jack Dorsey[3] came out today stating that he sees BTC as the world’s single future currency, overtaking the dollar in importance. Dorsey believes that Bitcoin will overcome its current obstacles such as high transaction costs, and will be used to buy everyday items such as coffee.
Bullish Run Could Continue For BTC/USD
This week’s bull run could well continue toward the end of this week. So far, Bitcoin has been on a bullish trend for most of the day, hovering around its highest levels over a seven-day period, but it’s now testing a major support at $8,850. Should that hold, another breakout above $9,000 could occur later in the day, taking BTC closer to its major resistance of $9,200. However, for the short term, it’s more likely that we see Bitcoin trade between $8,900 and $9,100.
Source: Tradingview[4]
As for the technicals, the MACD indicator is displaying a weak bearish signal, demonstrating movement toward the $8,850 support price. On the other hand, the RSI indicator shows that BTC is currently in a bullish zone, as the RSI index score is sitting at close to 20. In addition, BTC trading volume has shot up, so price movements in the next hours could be critical. This is building a case for BTC to hold its support at $8,850 and reverse back above $9,000.
Looking at the Technical Indicators:
- Hourly MACD — Weak bearish signal
- Hourly RSI — BTC is in bullish zone
- Major Support Level — $8,850
- Major Resistance Level — $9,200
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References
- ^ bull run from earlier this week (cryptocurrencynews.com)
- ^ a high of $11,660 (cryptocurrencynews.com)
- ^ Twitter CEO Jack Dorsey (www.thetimes.co.uk)
- ^ Tradingview (www.tradingview.com)
- ^ twitter (twitter.com)
