On Monday, February 24th, BTC was trading at highs of $9,963.51, with analysts looking forward to numbers above the $10,000 mark. Over the next four days, we watched as Bitcoin slid a significant amount reaching lows of $8,648 by Thursday morning. We may be witnessing a bitcoin bull run on hiatus. While such volatility is not unusual for BTC, a drop that low was not expected by some. For those looking for a Bitcoin comeback, it seems that the popular crypto is making an attempt. At the time of writing this article, Bitcoin was selling for $8,927.
Currently, hourly and daily charts indicate that Bitcoin’s comeback will reach close to or just past the $9000 mark. However, in order for Bitcoin to break free from the bearish trend that is now started prices will have to exceed $9450.
Bitcoin has been enjoying a very strong month. Nearly 30 days ago in late January Bitcoin prices were at the same place as they were on Thursday morning. There is a difference between late January and today’s prices, however. In January, prices for Bitcoin were hovering around the mid-8000s and were just beginning a steady climb to all-time highs for the popular crypto currency. This month the situation does not look quite as optimistic.
While long-term predictions still say that the 10,000 mark might be the new low, it may take some time for BTC to make the climb once again. On February 19, Bitcoin’s bull run came to an end. There is a price drop of nearly 6% which pushed Bitcoin straight out of bullish territory and into a new bearish trend. Prices fluctuated for a time but by Monday we could see that the $9400 requirement was not going to be met. Therefore, at least for a while, BTC seems to be in bear territory. That said, the recent bounce back seen on the charts indicates some seller exhaustion.
The four-hour Bitcoin charts indicate that the downward shift may be slowing. The RSI also shows signs of weakening bearish momentum as current readings are in the sub 30 range. Judging from these charts, it would be fair to say that we could be looking at $9000 prices quite soon. The current resistance for BTC to break back into bullish territory, however, is set slightly higher at almost $9300. On the other side of that coin, should Bitcoin close at prices under $8500, we will accept a continued bearish run.
Another indication that the Bears may yet maintain control of the charts can be found by looking at the five-day and 10-day MA, both of which are currently in a downward facing position. On the daily charts, therefore, there is still no signs that the current bounce back is going to be strong enough to make any difference at all.
In fact, there are several more indications that the drop in price is going to continue for a while then there are to support a strong bull run taking place. If the situation continues as is, prices could get pushed down to the low 8000s. However, if the current bounce back closes at or near $9500 BTC will be on good ground once again.