Bitcoin bulls risk losing control unless prices see a convincing break above the $9,000 mark soon, according to the technical charts.
Of concern is that the cryptocurrency has failed twice to hold above $8,900, as indicated by CoinDesks's Bitcoin Price Index (BPI). Further, bitcoin also clocked a six-day high of $9,070.64 on Feb. 10, but quickly fell back below the key psychological level of $9,000.
Thus, the area around the $9,000 mark has been established as a point of stiff resistance, as is being discussed by the investor community.
As of writing, bitcoin's global average price on the BPI is at $8,390. The cryptocurrency has appreciated by at least 40 percent from the recent lows below $6,000. However, the bulls are still not out of the woods and need to move prices quickly above $9,000 or the bears could once more exert their influence.
That said, exhaustion around $9,000 has neutralized the immediate outlook and bearish revival is seen only below Feb. 2 low of $7,845.
Daily chart: Stuck in a falling channel
- BTC is trapped inside a falling channel marked by trendlines representing lower highs and lower lows.
- Both the bullish 5-day moving average (MA) and 10-day MA crossover and an upside break of the descending trendline on the RSI favor the upside.
- Still, the cryptocurrency faced rejection at the descending trendline/falling channel hurdle earlier today and is now changing hands below $8,500.
Daily chart: Long-term momentum studies turn bearish
As discussed yesterday, the weekly chart is biased towards the bears. Thus, the bulls need progress soon,via a quick move above $9,000.
A close above $9,000 would confirm an upside break of the falling channel, meaning bearish-to-bullish trend change. It would also add credence to the bullish 5-day MA and 10-day MA crossover and open doors for a move higher to $11,500–$11,800.
On the other hand, a close below $7,851 (Nov. 2 low) would signal the corrective rally from Feb. 6 low has ended and would encourage stronger sell-off to $5,000.
Disclosure: CoinDesk is a subsidiary of Digital Currency Group, which has an ownership stake in Coinbase.
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