Since making a strong attempt at reclaiming the $9K mark at the start of the month, Bitcoin (BTC) price has pulled back slightly but now trades in a tightening range between $8,662 and $8,946. The digital asset is attempting to retake $9K but continuously receives pushback at $8,969.
The total crypto market cap chart shows that purchasing volume has ground to a halt and is yet to recover from the onslaught of last week. As shown below, the total market cap found support at $236.9 billion where there is a high volume node and currently the market cap is holding above the 200-day moving average.
Crypto total market cap daily chart. Source: TradingView
For the time being, it seems investors are still sitting on their hands, assessing whether the spread of the Coronavirus will continue to negatively impact global markets, hence Bitcoin’s recent sideways price action.
Crypto market daily price chart. Source: Coin360
At the time of writing, Bitcoin price is also finding support at a VPVR high volume node located from $8,670 to $8,853 and traders are working to keep the price above the 200-MA.
$8,400, a point aligned with the 128-MA and the 50% Fibonacci retracement, has functioned as a strong level of support so if bulls were to lose control the 200-MA traders will look to $8,400 as an area for a bounce.
BTC USDT daily chart. Source: TradingView
While $8,670 is working as a support, $8,844 is an area Bitcoin is struggling to overcome but if the price could push above this level then a move to $9,150 is possible. This would place the price above the 20-MA of the Bollinger Band indicator but it is worth mentioning that strong rejection at $9,150 would complete the right shoulder of the head and shoulders pattern on the daily timeframe, making a retest of either the 200-MA ($8,720) or 128-MA ($8,444) likely.
BTC USDT 4-hour chart. Source: TradingView
On the 4-hour timeframe, one can see that a high volume spike led to the price to recently breaking out above the bull flag trendline and an encouraging move would be to see continuation through the high volume VPVR node at $9,140 and a higher high set above $9,382.
Even flipping $8,966 to support would be an encouraging sign as it would extend the current trend of daily higher lows. The convergence of the MACD and signal line on Feb. 28 was an early tell that a bullish reversal was in the making as the Bitcoin’s price was still trending lower as the MACD and RSI trended higher.
At the time of publishing, Bitcoin price is attempting to push through $8,900 in what appears to be a strong attempt to take over the resistance at $8,977. Volume permitting, traders will have their sights set on $9,140, a higher high above $9,306, and flipping this $9.3K level to support will strengthen the chance of Bitcoin price taking another shot a $9.5K, which is a key level.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of CryptoX. Every investment and trading move involves risk. You should conduct your own research when making a decision.
