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article imageBitcoin could be moving up to test $9,000 mark

By Ken Hanly     Mar 20, 2018 in Technology
Bitcoin (BTC) rose yesterday well over the $8,000 level and stayed there. Today so far bitcoin appears to be holding its gains.
According to technical analysis in an article at Coindesk the price could soon test the $9,000 mark. Just a few days ago, the price recovery seemed to be reversing, and it looked as if the cryptocurrency was going to drop further as it fell below the $8,000 mark.
The last two days have seen bitcoin recover almost 30 percent of its drop from a high of $11,660 March 5, to the much lower high of $7,335 on March 18th. The bearish descending trend line was broken on the upside. For the short term, signs are that the price has bottomed out.
Price is staying in a limited range
So far the trading pattern is in a narrow range between $8,200 to $8,700, indicating a sideways movement rather than any breakthrough to the upside or downside. This has been happening now for over 20 hours.
Trading volume is staying around the monthly average of $6.64 billion rather than showing an upsurge which would show the recovery was likely to continue.
Price chart shows bitcoin price could move higher
Chart analysis shows that the bitcoin price could be building a base about $8,200 in preparation for a move higher towards $9,000.
As of 20:00 UTC on Tuesday the price is up at about $8,821 up over 2.6 percent on the day, and not that far off from the $9,000 level.
Daily chart
Sunday's short term bullish reversal was followed by a positive follow through on Monday. Bitcoin closed at above the ten day moving average (MA) on Monday. This indicates that a short term consolidation is possible and points to a likely positive movement. The five day and 10 day MA have both bottomed out negating any bearish trend.
The analysis concludes: "Major resistance is seen at $9,157 (200-day moving average) and major support is seen at $7,665 (March 15 low) and $7,240 (March 18 low)."
Future outlook
The Coindesk conclusions from their technical analysis: "BTC will likely test $9,000 (psychological hurdle) and $9,157 (200-day MA) in the next 24-36 hours. A daily close above the 200-day MA would open the doors for $10,000. Currently, further gains are ruled out, as suggested by the bearish weekly chart.On the downside, a move back inside the falling wedge would signal bullish invalidation. A daily close (as per UTC) below $7,240 (March 18 low) would revive the bearish outlook."
So far today it looks as if the BTC price is on its way to testing the $9,000 level but that can always change quickly.
Discussion of cryptocurrencies at G20 meeting in Argentina
Mark Carney of the Bank of England who earlier had spoken quite critically of the cryptocoin craze said at the G20 meeting in Argentina that crypto assets posed no risks to the world economy. This no doubt helped allay some members' fears about cryptocurrencies.
Crypto area investor Marius Rupsys said that the level of interest expressed at the meeting was a sign that virtual currencies were growing in mainstream awareness. He said: “I view this event very positively - crypto assets being discussed by largest countries shows it has reached important milestone to be considered big enough to be discussed on a global level.”
However crypto expert and blockchain investor Oliver Isaacs warned: "While the Financial Stability Board’s statement may temporarily temper the otherwise increasingly hostile regulatory climate for cryptocurrencies, what transpires as world leaders meet at the G20 summit this week remains to be seen.”
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