Bitcoin Price Bowing Down To Profit-Taking As $9,000 Beckons
- Bitcoin's chances of testing and breaking above $9,400 sabotaged by the rejection at $9,433.
- The formation of a bullish flag pattern is a key indicator that a bullish reversal is in the offing.
Bitcoin is faced with increased selling activity after the recovery that achieved a new January peak at $9,433. The desire to test and break the critical hurdle atv$9,500 has been thwarted by the depressing bearish activities since Wednesday. The Asian session on Thursday is still grappling with the same pressure with BTC having lost 0.44% of its value.
Bullish flag pattern
The correction from the recent high has been happening between two short term descending trend with equal distance between them. The trendlines have formed a bullish flag pattern. The impact of the pattern has the potential of rebalancing Bitcoin back into the trajectory towards $9,500 in preparation for an assault on $10,000. However, a further dip from the market value of $9,255 is likely to occur before the breakout comes through.
Bitcoin Price Technical Picture
From a technical perspective, Bitcoin has an affinity for declines at the moment. Using the Relative Strength Index, the trend shows that the path of least resistance is to the south. The RSI at 45 is gradually moving downwards. The continued motion towards 30 will increase the bears’ confidence in the downtrend, resulting in more selling activity. This could risk the support at $9,200 as well as $9,000.
The same bearish picture is shown by the falling Moving Average Convergence Divergence (MACD). Its bearish cross signals that Bitcoin could cover more ground downwards as opposed to upwards in the coming sessions.
Bitcoin Key Levels
Spot rate: $9,255
Relative change: -35
Percentage change: -0.44
RSI and MACD: Bearish signals hint more downside coverage
Trend: Bearish
Support: $9,250
Resistance: $9,400
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