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 CoinDesk’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. 2nd’s low of $7,845.
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 middle average and 10-day middle average crossover and open doors for a higher move 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.
As latecomers to the crypto boom wnder when best to jump on the bandwagon, analyst recommed that novice investors wait till prices fall for them to jump in, hoping for a ride to the top. It’s all in the timing!