Since the beginning of last week, Bitcoin finally broke out of the descending parallel channel (the purple lines). As expected, the break paved the way to a test of the key resistance in low $9,000s, where multiple layers of resistance are located.
Most notably, the 200-DMA and the horizontal resistance, that played an important role in the past, helped the bears defend this zone from the first attempt of the bulls to get past. Moreover, the 38.2% Fibonacci retracement lies just above $9,200 to further adds to this zone of interest.
As seen in the chart above, this area has always acted as an important pivot point in determining the future Bitcoin price movements. The price action has touched the $9,000 handle on multiple occasions in the past and reacted in the opposite direction, both as a support and resistance.
Therefore, we expect this area to continue acting as a strong technical indicator. If breached, the next resistance block is located around the $10,000 mark. On the downside, the broken channel resistance will now provide support to bulls around the $8,100 mark, while the 200-DMA sits just below the $8,000 handle.
Most notably, the 200-DMA and the horizontal resistance, that played an important role in the past, helped the bears defend this zone from the first attempt of the bulls to get past. Moreover, the 38.2% Fibonacci retracement lies just above $9,200 to further adds to this zone of interest.
As seen in the chart above, this area has always acted as an important pivot point in determining the future Bitcoin price movements. The price action has touched the $9,000 handle on multiple occasions in the past and reacted in the opposite direction, both as a support and resistance.
Therefore, we expect this area to continue acting as a strong technical indicator. If breached, the next resistance block is located around the $10,000 mark. On the downside, the broken channel resistance will now provide support to bulls around the $8,100 mark, while the 200-DMA sits just below the $8,000 handle.