Bitcoin is having a pretty good week. A bullish trend, which began on Monday, has seen the price of Bitcoin recover from its monthly low of $7,762 two weeks ago.
During the last four days, Bitcoin has climbed, but it’s met strong resistance near the $8,700 per coin mark.
This is a key zone, because it marks the EMA 200 line (the Exponential Moving Average of the last 200 days, which gives an approximation of what the actual price of BTC should be if we consider its performance in the previous months.
Be the first to get Decrypt Members. A new type of account built on blockchain.
Yesterday, a gentle bullish push that started at $8,180 sparked optimism in traders and hodlers. The bulls expected it to cross the EMA200 as confirmation of a trend that could lead BTC to at least a zone near $9,500.
And, in fact, it did—but not for long.
At 3:00 UTC, the bulls broke that barrier for a few minutes, but soon tired out. Almost immediately, the price corrected to below $8,500 per bitcoin, according to TradingView.
Currently, Bitcoin is priced at about $8,555 and is having difficulty taking off. Although this may seem discouraging for traders in the short term, the truth is that these small corrections serve to balance the markets. A trend without corrections increases its risk over time.
Zooming out, Bitcoin still remains in a downward channel. Most analysts believe that before talk of any possible rally can begin, Bitcoin must first break the resistance of this channel located near a price of $9,500.