Bitcoin price analysis: Bounces-off two-week lows, $ 9000 back on sight?

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  • Bitcoin looks to regain the 9k handle, as the buyers return on Saturday.
  • But recovery appears capped while below 38.2% Fib level on hourly sticks.

Bitcoin (BTC/USD), the most favorite cryptocurrency, is on a gradual rise this Saturday, reversing a dip to two-week lows of 8,668.60. Despite the profit-taking rally, the coin remains below the 9k level, losing nearly 4% over the last 24 hours. At the press time, the No. 1 coin trades near 8,850/60 region, up over 1% on the day while it’s market capitalization stands at $ 160.12 billion.

From the near-term technical perspective, given that the first coin has managed to sustain the comeback so far, the bulls are seen struggling to overcome the 38.2% Fibonacci Retracement (Fib) of the recent sell-off to two-week lows, located at 8,883. The hourly Relative Strength Index (RSI), which rests in the overbought territory above 90.0, also suggests that the bulls are having a tough time extending the bounce. Only a sustained breakthrough above the last could confirm a bullish reversal, with the next upside barrier seen at 9k mark, above which the next upside target lies near 9,030/40 region, the confluence of the 61.8% Fib and bearish 100-hourly Simple Moving Average (HMA).

On the flip side, the downside momentum could resume if the price breaches the 21-HMA support at 8,820, with the next support eyed at the 8,800 level, where the 23.6% Fib level coincides. Should the bulls fail to defend the last-mentioned round number, the two-week lows will be back on the sellers’ radar.

BTC/USD 1-hour chart

BTC/USD Levels to watch

 

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