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Bitcoin Prices Stall At Critical Resistance As PBoC Injects Liquidity

Bitcoin - BTCUSD
Bitcoin - BTCUSD

In response to the coronavirus outbreak, the Peoples Bank of China (PBoC) has injected the sum of $173billion to stave off panic and reintroduce calm into the markets. This action by the PBoC may have started to have an impact on Bitcoin prices, with the forcing action to as high as just above $9,600 before pulling back on the day. Since last week, several candles have tested the price areas at 9485, and despite violations to the upside, every single candle has ended up pulling back below the resistance.
Recall that several cryptocurrencies gained ground as investment money sought the crypto markets as an alternative market. These followed the coronavirus outbreak triggered a selloff in risky assets.

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Technical Play: BTCUSD

The 9485 price level is the resistance formed by the 38.2% Fibonacci retracement from the swing high of November 2017 to the swing low of December 2018. Worthy of note is the fact that this price area corresponds to the completion of the measured move from the breakout of the symmetrical triangle that occurred on Jan 6 2020. Furthermore, the RSI’s signal line was rejected at the overbought region’s border and is tracking to the south. 

Further rejection of Bitcoin price at this critical area could lead to a resumption of the long term downtrend, targeting 8874.49, 8550.12 and 8000.90 respectively, as these are price levels that as recently as three weeks ago, functioned as resistance areas. 

On the flip side, a breakout move which can take Bitcoin price activity above 9485 with a closing penetration of 3% on the weekly candle could force the door open for a push towards 10,930.82 and 11482 (50% Fibonacci retracement), which will renew hopes for an eventual long-term trend change for BTCUSD.