Following a few days of sideways trading, bitcoin has rallied over the past few days as stock markets rebounded. Next targets are in the $9k area but analysts are not holding their collective breath.
Central bank stimulus hopes gave stock markets a much welcomed surge yesterday following their worst performing week for over a decade.
Crypto markets also benefitted, having a solid start to the week with a gain of almost $15 billion since they bottomed out at $240 billion yesterday. Total cap is currently over $250 billion and hopes of a renewed rally are starting to seep back in to the crypto-sphere.
Bitcoin Closes in on $9,000
The 3% gain has taken the asset back above $8,800 to tap resistance at the 200 hour moving average. It is now trading back above the 200 day moving average and heading towards resistance at the 50 day m.a. which lies around $9,150.
Crypto traders and analysts are looking for chart patterns and one has identified a head and shoulders wh
ere the right shoulder could top out at this level.
A potential head and shoulders formation with the target at ~6100$.
Considering the 9150$ as a level of the previous support/resistance zone, the right shoulder might top there. $BTC $BTCUSD #bitcoin $XBT pic.twitter.com/ymqfevpneA
— CryptoHamster (@CryptoHamsterIO) March 3, 2020
The downside prediction of just above $6k is pretty extreme and it is likely that there will be strong support at $8,300 to break first.
Either way, bitcoin is doing its thing and appears to be moving in correlation with stock markets at the moment. It is still on track for massive gains after the halving if stock-to-flow models are to be believed.
Elsewhere on Crypto Markets
As usual the rest of the digital lemmings have mirrored the price action of their big brother, some making even greater gains.
Ethereum has made it back to resistance at $230 with a 5% move on the day. It is only likely to shift gears again if BTC can top $9k today.
Ripple’s XRP has grabbed a little action also with 3.5% added while BCH takes 6% and BSV 9%. Litecoin has topped $60 again and EOS and BNB have grabbed 3% on the day.
Tezos is back up 5% tapping $2.75 and Chainlink surges even higher with a 9% move taking it to $4.25. These gains are just a natural bounce off the back of a painful week so nothing to get too excited about just yet.
The real test will come for bitcoin which must top $9k for any hopes of a renewed rally.
Will BTC break $9k today? Add your price predictions in the comments section below.