Hello traders! Today I would like to bring your attention to the Bitcoin price action, which in my view is quite interesting. This is because price stands right at the bottom of the ascending channel. But let’s get to the price action prior to that to understand the entire picture.
Based on our previous BTC analysis, Bitcoin has reached the upside target at $8555. Not only it reached the target but broke above, hitting $1067 high. Finally there was a break above the 10k level, which is the first very bullish sign.
On the corrective wave down, the price has retraced down to $8117, where 200 Exponential Moving Average was rejected cleanly. At the same time, our previous upside target at $8555 has acted as the support, and as we can see, BTC/USDT only managed to produce spikes below but failed to close lower. Yet another bullish sign from the mighty Bitcoin.
If we get back to March 7, there was another rejection of the 200 EMA at $9170. Currently this level is acting as the support and potentially key or decision-making price for the Bitcoin. As long as the price remains above this support, BTC will continue trending up at least till the previous resistance at $10600 area. This resistance zone is confirmed by the 127.2% Fibonacci retracement level applied to the corrective wave down after braking the 10k resistance.
In regards to the downside risk, it remains very low. However, if key support at $9170 will be broken, with a daily close below, Bitcoin will continue correcting down and should go for the $7675 price, which is a previously established resistance.
Bias: Strongly bullish while above $9170
Potential Support Zone: $9170 – 9350
Potential Targets: $10500
Have a profitable trading!