[ad_1]
The price of Bitcoin (BTC) briefly broke above $ 9,000, while the bulls appear to be in the process of trying to quietly move the price above the resistance level. According to Coinmarketcap, Bitcoin’s market cap is currently $ 163,723,772,990.
Since Friday, the trading volume of the highest-ranking cryptocurrency on CoinMarketCap has been virtually non-existent, while the price was trading laterally between $ 8,750 and $ 8,850 for most of the day, but the weekend is determined to spark a movement. stronger directional.
Graph of the daily price of the cryptocurrency market. Source: Coin360
Will the TD9 be activated again?
As Cointelegraph reported, the presence of a TD9 in the daily time frame, technical indicators showing overbought and declining trading volume suggested that Bitcoin’s price had been overextended and traders believed that the loss of momentum would culminate in further evidence of underlying support levels.
Although the Sequential TD9 has proven to be a fairly reliable indicator of trend changes in the action of the bitcoin price, the digital asset is known for its tendency to head higher even when indicators like Stochastic RSI and MACD are showing a big overbought.
Since halving is only 9 days away, enthusiastic investors could simply ignore any bearish signals in the belief that the price will continue to rise until halving.
Low volume weighs on momentum
The move to $ 9,000 came from gradually increasing purchasing volume and a bullish cross in the converging moving average divergence. The MACD histogram has taken a positive turn as momentum continues above line 0 but the Relative Strength Index has dropped below 50 within 1 hour.
1-hour chart of the BTC / USDT pair. Source: TradingView
While the move above $ 9,000 is encouraging, it lacks strength and the Chaikin Money Flow oscillator remains below 0, and while there is a higher low hourly pattern, the slightly longer upper candle shadows show than momentum and volume remain weak compared to rebound that occurred earlier this week.
As shown in the visible range indicator of the volume profile in the 1 and 4 hour time frame, Bitcoin price needs to stay above $ 8,950, since this resistance has prevented the asset from rising during the last 2 days.
Weekly chart for the BTC / USDT pair. Source: TradingView
According to Cointelegraph contributor Michael van de Poppe, This week’s over 35% rally ended with a lockout placed right at a key resistance between 9,200 and 9,500 Dollars. Van de Poppe explained that:
All this resistance zone provided support during mid-2019.
Short term, traders should be aware of hourly volume and whether the price can stay above $ 8,800. If the $ 8,800 mark is missed, traders will look for the price to retest the recent lows of $ 8,400 and $ 7,800.
Do not stop reading:
