The price of Bitcoin (BTC) briefly exceeded $ 9,000, with the bulls appearing to be trying to gently push the price above the resistance level.
Since Friday, the trading volume of the highest-ranked cryptocurrency on CoinMarketCap was practically nonexistent, as the price traded laterally between $ 8,750 and $ 8,850 for most of the day, but the weekend should lead to a movement. stronger directional.
Daily crypto market price table. Source: Coin360
Will the TD9 ring again?
As reported by Cointelegraph, the presence of a TD9 over the daily period, the technical overbought indicators and the drop in trading volume suggested that the price of Bitcoin had become too wide and traders believed that the loss of momentum would result in a new test of the underlying support levels.
Although the TD Sequential has proven to be a fairly reliable indicator of trend changes in Bitcoin price action, digital assets are known for their tendency to push higher even when indicators like Stoch RSI and MACD are strongly overbought.
Since the halving is only 9 days away, enthusiastic investors could simply ignore any bearish signals with the belief that the price will continue to go up in the halving.
Low volume weighs on momentum
The transition to $ 9,000 occurred on the gradual increase in the volume of purchases and a bullish crossover on the divergence of moving average convergence. The MACD histogram became positive as the momentum continued above the 0 line, but the relative strength index fell below 50 over the one hour period.
1 hour BTC USDT chart. Source: TradingView
While the move above $ 9,000 is encouraging, it lacks strength and the Chaikin Money Flow oscillator remains below 0, and even if there is a lower hourly pattern, the slightly longer tight candlesticks higher shadows show momentum and volume remain low compared to the rally that took place earlier this week.
As shown by the visible range indicator of the volume profile over the period of 1 hour and 4 hours, the price of Bitcoin must remain above $ 8,950, as this resistance prevented the asset from rising higher. in the last 2 days.
BTC USDT weekly chart. Source: TradingView
Cointelegraph contributor Micheal van de Poppe said this week’s 35% + rally ended just at a key resistance block between $ 9,200 and $ 9,500. Van de Poppe explained that:
All of this resistance zone supported throughout the summer of 2019.
In the short term, traders should closely monitor the hourly volume and whether or not the price can exceed $ 8,800. If $ 8,800 is lost, traders will seek the price to retest the most recent lows at $ 8,400 and $ 7,800.
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