- Bitcoin recovery to $9,000 will not be an easy nut to crack based on the current technical picture.
- Trading above the key resistance between $8,514 and $8,602 will pave the way for action heading to $9,000.
The cryptocurrency market is still ensnared in bearish traps despite the new week. The majority of the assets are in the red. Bitcoin, for instance, is trading 0.4% lower on the day. After opening the session on Monday at $8,501, the bulls only managed to test $8,502 (intraday high). The price has since adjusted to the current $8,468 amid a developing bullish momentum.
Little action has been witnessed since the last price analysis published toward the end of the Asian session. The confluence detector tool, however, suggests that Bitcoin is trading within a whisker of a strong resistance zone. The cluster of technical indicators in the zone between $8,514 and $8,602 range suggests that penetration will not a walk in the park. Some of the indicators include the Bollinger Band 15-mins middle, Fibonacci 61.8% one-day middle, SMA 200 15-minutes, previous high 15-mins, SMA 50 15-mins, Fibo 61.8% one-month, SMA 100 1-hour and the BB 1-hour upper.
Trading above the above key zone could unleash Bitcoin’s potential to jump above $9,000. However, it is apparent that more hurdles exist at $8,690 and $8,954. These zones will make recover a lot more difficult.
On the flipside, initial support is placed at $8,426 and is highlighted using the BB 4-hour lower, BB one-day lower and the previous low 4-hour. Other mild but vital support areas include $8,250 and $7,897.
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