Bitcoin has finally broken back above the $8,000 – after surging by a total of 5.57% over the past 7 trading days – to reach where it is currently trading at a price of around $8193. The cryptocurrency had seen a shaky start to the beginning of June 2019, however, the recovery seems to be taking shape at this moment in time.
Bitcoin now needs to break above strong resistance at the $8265 level before being able to travel higher. In this article, we will take a look at the resistance on the way up toward the $9,000 level for Bitcoin.
Bitcoin has seen an extraordinary price explosion over the past 3 trading months which totals over 108%. This has now allowed the market cap for cryptocurrency giant to surge toward the $145 billion level.
Bitcoin Price Analysis
BTC/USD – MEDIUM TERM – DAILY CHART
Analysing BTCUSD from the daily chart above, we can see that at the start of June 2019, Bitcoin had dropped from a high above $8,600 and fell toward support beneath $8,000 located at the $7,550 level. More specifically, we can see Bitcoin had rebounded from short term support at the .382 Fibonacci Retracement level (drawn in green) priced at $7,419.
After rebounding from this support, we can see Bitcoin went on to climb higher until meeting resistance at the $8,000 level. The market had struggled at this resistance level for a few days until recently breaking above to reach this current resistance level at $8,265. We can see that the resistance at $8,265 had provided problems for the market during May 2019 and is expected to provide trouble moving forward.
Looking ahead, if the bullish pressure can cause BTCUSD to climb above the current resistance at $8,265, we can expect immediate higher resistance above to be located at $8,500. This is then followed up with some more resistance at the $8,600 and $8,888 levels. If Bitcoin can climb above $8,888 and $8,900 – it will be clear to make an attempt at the target level at $9,000. To reach the target level, Bitcoin must increase by a total of 10% from the current price.
Above $9,000, further higher resistance is then expected at the medium termed 1.272 and 1.414 FIbonacci Extension levels (drawn in blue) priced at $9,326 and $9,810, respectively.
The Stochastic RSI has recently produced a bullish crossover signal in overbought territory which suggests that the bulls are back in action. If it can continue to rise, we can expect BTC to reach $9,000 within June.