Bitcoin Rally Above $9K Stalls as Sellers Push BTC Back to Key Support
Bitcoin (BTC) price briefly broke above $9,000 as bulls appear to be in the process of trying to quietly move the price above the resistance level.
Since Friday trading volume for the top-ranked cryptocurrency on CoinMarketCap had been virtually non-existent as the price traded sideways between $8,750-$8,850 for the majority of the day but the weekend is bound to bring about a stronger directional move.
Crypto market daily price chart. Source: Coin360
As reported by Cointelegraph, the presence of a TD9 on the daily time frame, overbought technical indicators, and decreasing trading volume suggested that Bitcoin price had become overextended and traders believed that the loss of momentum would culminate as a retest of underlying support levels.
Although the TD Sequential has proven to be a fairly reliable indicator of trend changes in Bitcoin price action, the digital asset is known for its tendency to push higher even when indicators like the Stoch RSI and MACD are strongly overbought.
Given that the halving is a mere 9 days away, excited investors could simply be overlooking any bearish signals with the belief that the price will continue higher into the halving.
The move to $9,000 occurred on gradually increasing purchasing volume and a bull cross on the moving average convergence divergence. The MACD histogram has flipped positive as momentum continues above the 0 line but the relative strength index has dropped below 50 on the 1-hour timeframe.
BTC USDT 1-hour chart. Source: TradingView
While the move above $9K is encouraging, it lacks strength and the Chaikin Money Flow oscillator remains below 0, and even though there is an hourly pattern of higher lows the tight candlesticks slightly longer upper shadows show momentum and volume remain weak compared to the rally which occurred earlier this week.
As shown by the volume profile visible range indicator on the 1-hr and 4-hr time frame, Bitcoin price needs to hold above $8,950 as this resistance here has prevented the asset from moving higher for the past 2 days.
BTC USDT weekly chart. Source: TradingView
According to Cointelegraph contributor, Micheal van de Poppe, this week’s 35%+ rally ended right at a key resistance block located at $9,200-$9,500. Van de Poppe explained that:
This whole resistance zone provided support throughout the summer of 2019.
For the short term, traders should keep a close eye on hourly volume and whether or not the price can hold above $8,800. If $8,800 is lost, traders will look for the price to retest recent lows at $8,400 and $7,800.
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Author: Horus Hughes
Bitcoin Drops $600 Following Massive Selloff
Bitcoin is currently trading for over $8,800, but during yesterday’s early morning hours, the currency ultimately spiked beyond $9,000 for the first time in well over two months. Now that bitcoin has fallen somewhat, analysts are trying to figure out what may have happened.
The sentiment is that a massive selloff occurred once bitcoin reached this point. It’s an unfortunate fact to consider; the idea that bitcoin gains a bit of momentum and all anybody can think to do is sell? At this point, traders should know that selling their bitcoin the minute it grows like that is not going to have good results for the coin. It’s going to fall almost instantly, resulting in a temporary bear status.
This time appears to be no different. It hit $9,000, people sold their stashes, and then boom! It dropped again. Right now, bitcoin is trading for about $600 less, suggesting a heavy fall for the world’s number one cryptocurrency by market cap.
An anonymous trader talks about how most crypto enthusiasts sought to sell bitcoin the minute it hit the $9,000 mark. He explains:
Spoke to a couple of OTC desks and heard that there were record amounts of BTC being sold above 9K.
While it’s understandable that most people would want to take advantage of the higher price and put a little cash into their pockets – especially lately, when digital assets have had a scary run and many people have witnessed them lose loads of value within a matter of weeks – this can be considered something of a mistake in that it’s going to put a halt to the coin’s momentum. Right now, many hodlers and hardcore traders are probably wondering how far bitcoin could have gone if it was not the subject of a selloff.
The power and excitement behind bitcoin seem to have slowed down a bit. Stopping at just over $8,800, the currency has experienced a halt in its sudden price bursts and now it looks like enthusiasts will have to wait before BTC takes precedence again.
Many crypto exchanges report seeing heavy traders over 24-hour periods. Trading platforms like OKEx and Coinbase say millions of dollars in BTC were traded the minute bitcoin hit $9,000. In addition, for exchanges like Coinbase, this trading proved too hard to handle. The company experienced heavy technical difficulties and processing delays given the amount of people that were utilizing its services, which caused the trading enterprise to crash temporarily.
This is not the first time Coinbase has experienced such results. The first occurrence took place in 2017, when bitcoin was trading for its all-time high of about $20,000. Many people were having FOMO (fear of missing out) and jumping on as quickly as they could to get a piece of the BTC action.
Tags: bitcoin, bitcoin price, coinbase
Author: Nick Marinoff ·
Arthur Hayes: I’m Taking Bitcoin (BTC) Private at $420,000
The third Bitcoin halving event will happen at a time when the world is facing by both a global pandemic and the prospects of the greatest recession since the 1930s Great Depression. The chilling coincidence of the halving happening amidst such uncertainty and economic turmoil is one reason many believe that Bitcoin’s greatest test to date will be surviving the current economic times.
In a recent Tweet, the Co-Founder and CEO of Bitmex, Arthur Hayes, has joked about taking Bitcoin private at $420,000 after securing funding for such an endeavor. Mr. Hayes tweet, which alludes to a similar one made by Elon Musk in August of 2019, can be found below.
Funding secured, I’m taking #bitcoin private at $420,000. Many thanks to the Vision Fund for their support. https://t.co/NAntTqE6hB
— Arthur Hayes (@CryptoHayes) May 2, 2020
When Mr. Musk made the Tweet in August of 2019, he was haunted by the SEC and forced to relinquish his position as Tesla Chairman. Additionally, he was forced to pay a $20 Million fine. However, Tesla stock eventually got to $420 and exceeded this value in February of this year when TSLA traded at around $960. Tesla is trading at $701 at the time of writing this.
With the aforementioned Bitcoin (BTC) halving only 9 days away, it is clear as daylight that the amount of BTC mined per block will be reduced by half. This, in turn, means that after the halving this month, 6.25 BTC will be rewarded per block mined, down from 12.5. Additionally, we know that there will only be 21 Bitcoin in existence with approximately 2.642 Million yet to be mined. Bitcoin’s availability can be quantified with accuracy unlike Gold and regular fiat.
In summary, as time progresses and the demand for Bitcoin continues to rise, the price of BTC will have no option than to rise. Eventually, Mr. Hayes’ $420,000 value will be met and exceeded by Bitcoin. The only unknown factor is time…how long will it take?
(Feature image courtesy of Dario on Unsplash.)
Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Ethereum World News or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.
Author: John P. Njui