- Bitcoin reversal to $8,000 is creating fresh demand and confirming the bull rally to $10,000.
- Bitcoin is starting to range above $8,400 support with the upper limit at $8,600.
For ardent followers of the cryptocurrency industry and precisely those that have been following Bitcoin price movements, the recent on Thursday did not come as a surprise to them. In fact, some investors were looking forward to the reversal in order for Bitcoin to create fresh demand and confirm the trend that would eventually rise above $10,000.
Prior to the declines, Bitcoin had extended the gains breaking above the hurdle at $9,000. It formed a high at $9,090 before giving way for the bears to have their field day. The bear pressure pushed the price below the support at $8,600 and butchered the next support target at $8,400. The unstoppable declines explored the levels below $8,100 before the bear trend came to a halt at $8,000.
Meanwhile, the recovery has made it above $8,400 (broken support) and BTC/USD is dancing with $8,417. In spite of the correction, bear influence is still present especially with the 50 SMA increasing the gap below the longer term 100 SMA.
According to technical analysis, we are likely to see Bitcoin starting to range above $8,400 support with the upper limit at $8,600. The ranging trend is currently confirmed by the RSI which is horizontal at 52.00. The MACD is moving upwards towards the mean line (0.0); crossing into the positive territory will be an indicator of bullish pressure.
BTC/USD 1-hour chart
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