Bitcoin price has fallen below the $9,000.00 psychological handle. As pointed out by Nikolas yesterday, BTCUSD has fallen to support at the 100 SMA and 200 SMA. Additionally, when connecting the lows of December 18 and January 3, the cryptocurrency seems to be testing support at the rising trend line too. The candlesticks in the last three trading days has formed a morning star pattern.
In forex trading, this is considered as a bullish confirmation signal. It could mean that there may be enough buyers in the market to push bitcoin price above $10,500.00 where it peaked on February 12.
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Zooming in to the 4-hour time frame, we can see that the rally on BTCUSD could be limited to $9,600.00 where there is a confluence of resistance. For one, this price coincides with the 100 SMA and 200 SMA. By connecting the highs of February 13, February 19, and February 23, there could also be trend line resistance at this price. Lastly, drawing the Fibonacci retracement tool from the high of February 23 to the low of March 1, the 61.8% Fib level aligns at this price too. Reversal candlesticks around the area could indicate that the bullish run on bitcoin price has run out of steam.
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