Azeez Mustapha is a specialist in Computer Studies (including DTP), Forex and Crypto trading professional. Being expert technical and currency analyst, as well as experienced fund manager and author of several books, Azeez places strong focus on crypto market studies conducting comprehensive price analyses and sharing forecasts of presumptive market trends.
The increase of BTC price to $9,200 was unexpected. The correction took place as Bitcoin was not ready to stay above the level of $9,000.
After an incredible week of bullish growth, when Bitcoin price adjusted from $7,700 to $9,200, consolidation began as traders are preparing for a new attack for $9,200. Recovery, not unique to Bitcoin, has significantly raised most altcoins.
Bitcoin fell beneath $8,700 after a brief shift to $8,791 in the early Asian hours. The first digital coin remained mostly unchanged both daily and from the beginning of Wednesday, as the market entered a limited-range phase after sharp movements at the end of the previous week.
The increase to $9,200 was unexpected, but the correction was a reflex action since Bitcoin was not, in principle, ready to stay above the level of $9,000. Moreover, investors are likely to begin profit-taking after being stuck in lower levels for some time.
Bitcoin faced the challenge of overcoming the powerful downside pattern through which they have been leading the market since the beginning of 2018.
An analysis of the main periods indicates that bitcoin is exhausted, and the intersection of the RSI is only one of the signs of weakness.
Meanwhile, in minor charts, perception is the opposite of a shorter term. Indicators are on the verge of bull crosses, which in terms of time will expand to months in the future.
A comprehensive analysis indicates the structural weaknesses of BTC/USD, which may bring a price reversal in the near term.
BTC/USD Technical Analysis: $9000 Stays as Obstacle for Growth
Supply Levels: $8,600, $8,200, $7,800
Demand Levels: $9,200, $9,000, $8,750
BTC/USD was trending within the horizontal resistance and support zones after the recovery of the upward movement at $9,000 level. The coin should continue its aimless swings until one of these barriers is broken.
BTC/USD is at present trending on the level of $8,630. On January 14, the pair entered the most bullish zone on the pattern, continuing the uptrend from December 18 lows.
The moving averages 5 and 13 are leaning higher, although in recent days it has lost its upward momentum.
The first level of resistance is $8,750, the second is $9,000, and the third level is $9,200.
The first level of support is at $8,600, then the second is at $8,200, and the third is at $7,800 due to the presence of an uptrend.