Bitcoin’s climb above $9,000 was seen after 4 rejections. However, since its successful breach on January 28, the price has managed to stay above it. Moreover, this has led to the creation of a new ATH in 2020 at $9,570. Will this journey above $9,00 last and extend into a bull market?
At press time, the technicals indicated a bearish signal that will push BTC lower, perhaps, very close to $9,000. Breaching below $9,000 has lower odds.
Hourly Chart
Source: BTC/USD TradingView
Although in development, the price of BTC seems to be forming an unusual falling wedge with a small slope. Overall, the pattern is bullish, however, the pattern could turn out to be a descending triangle, which could be bearish.
If the pattern turns out to be the former [falling wedge], there is hope, the worst that could happen is a dip down to $9,100 and a bounce from here, breaching out of the pattern. However, if the pattern develops into a descending triangle, there is a chance that Bitcoin could pierce the $9,100 easily and even reach the $9,000 level. Hence, as of now, based on the falling wedge, the pattern looks mildly bearish.
Indications
Source: BTC/USD TradingView
There is a bearish divergence being formed since the price is on a rise but the momentum indicator [RSI] is showing a decline. This divergence between the price and the momentum indicator could prove to be a bad signal for Bitcoin, further bolstering the bearish scenario mentioned above.
Moreover, the VPVR indicator, which indicates the price & time-based support and resistance, showed that the price was currently hovering above important support at $9,346. There has already been a breach of this level a few hours ago, however, another breach and flippening of the support to resistance seem likely and bearish.
Conclusion
The effects of the bearish divergence are already beginning to show as the price declines. A further decline will definitely cause BTC to retest the support $9,346; breaching this would push Bitcoin to the lower end of the VPVR spectrum at $9,241. After this point, its a freefall up to $9,100.
