The Bitcoin price has reached the $9,500 level for the fourth time since Feb 19, creating a strong support area.
Bitcoin Price Highlights
- The Bitcoin price is trading inside a short-term descending channel.
- It is most likely following a long-term symmetrical triangle.
- The daily RSI is at a critical point.
- There is support at $9,500.
The daily chart shows that the price is possibly trading inside a symmetrical triangle. It is currently trading inside a confluence of supports.
First, we have the ascending support line which has been validated four times in the short term. There is also minor support at $9,500. This area acted as resistance near the end of January. So, we can consider the current movement a validation of this area. Even though the price has decreased below it several times, it has failed to reach a daily close below. Until it does so, this is still considered a support area.
In addition, this is the 53rd consecutive day that the daily RSI has been above 50, where it is at the time of writing, making this an ample place for a bounce.
Considering that the symmetrical triangle is nearing its end, and the price & RSI are at important support levels, we should soon see a rapid movement in either direction towards the next support or resistance. A breakout to the upside is looking slightly more likely at this point.
In the short-term, the Bitcoin price has been trading inside a descending channel since Feb 10. It is currently trading inside the minor $9,500 support area, being very close to the descending support line. In addition, several long lower-wicks have been created, a sign of buying pressure.
Judging by the RSI movement, the price is trading in a range. This is so because the hourly RSI has been freely moving above and below the 50-line, a sign of consolidation.
Disregarding the channel in order to have a cleaner chart and outline a range, the support line fits with the minor support at $9,500. The price has decreased below it several times only to jump right back up soon after.
Therefore, the area is expected to hold and the price should continue moving upwards towards the middle of the range and eventually the range high at $10,000. This is also supported by the bullish divergence in the hourly RSI, though it is quite small.
To conclude, the Bitcoin price has reached the bottom of its range and a minor support area. The price will likely bounce at the current level and begin moving upwards towards the range high.
For those interested in BeInCrypto’s previous Bitcoin analysis, click here.
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Source: Be In Crypto