Since making a strong effort to reclaim the $ 9,000 mark earlier this month, the Bitcoin (BTC) price has dropped slightly and is currently trading in a tight range between $ 8,662 and $ 8,946. Leading digital assets are trying to reclaim $ 9,000 but are constantly being pushed back at $ 8,969.
The chart of total market capitalization of cryptocurrencies shows that buying volume has been exhausted and has yet to recover after last week's downturn. As can be seen in the chart below, total market capitalization has found support at $ 236.9 billion – where there is a high volume node and currently the market capitalization is holding above the 200 moving average. day.
Currently, it seems that investors are still waiting, assessing whether the spread of corona virus continues to have a negative impact on the global market or not, so the recent price action of Bitcoin owners sideway weak.
At the time of writing, the Bitcoin price is also seeking support at the high volume node VPVR that ranges from $ 8,670 to $ 8,853 and traders are trying hard to keep the price above the 200-MA.
$ 8,400 – a point consistent with 128-MA and the Fib 50% retracement, has acted as a strong support level, so if the bulls lose control of the market, then the 200-MA traders will find to $ 8,400 as an area to recover.
While $ 8,670 is acting as a support, $ 8,844 is the area where Bitcoin is trying to break through, but if the price can push above this level, a move above $ 9,150 is possible. This will set the price higher than the 20-MA of the Bollinger band indicator, but it is worth mentioning that a failure of the $ 9,150 resistance will complete the right shoulder of the head and shoulders pattern on the daily time frame, thus, A retesting of either 200-MA ($ 8,720) and 128-MA ($ 8,444) is likely to occur.
On the 4-hour time frame, we can see that a large volume spike has pushed prices above the bull flag trend line and an encouraging move would be to continue to overcome the high volume node at $ 9,140 and a higher peak above $ 9,382.
Even a reversal of $ 8,966 into support will be a good sign, as it will expand the current trend of the higher daily bottom. The convergence of the signal line and the MACD indicator on February 28 is an early notification that an uptrend reversal is taking place, as the price of Bitcoin is still trending lower as the MACD and RSI indicators. tend to be higher.
At the time of writing, the Bitcoin price is attempting to surpass $ 8,900 in what appears to be a strong attempt to conquer resistance at $ 8,977. If the volume is large enough, the traders will aim at $ 9,140, a higher peak above $ 9,306, and turning this $ 9,300 level into support will strengthen the opportunity for Bitcoin's price to rise to $ 9,500 – this is the level of important.
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Disclaimer: This article is an analysis by cryptocurrency analyst Horus Hughes – a frequent contributor to CoinTelegraph. Readers should only consult, do not consider this as an investment advice, especially from Toiyeubitcoin, we will not be responsible for your investment.
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According to CoinTelegraph
Translated by ToiYeuBitcoin