Bitcoin returned to gains, trading near the $8,630 level. After seeing a noticeably strong performance during the past two weeks, Bitcoin is now facing a strong resistance level at $9,200, as evident by the fluctuations seen last Saturday and a drop on Sunday, January 19 from $9,143 to $8,620.
However, despite the return of the most popular cryptocurrency to a rising trend, previously trading below the 200-day moving average seems to have pushed a bearish sentiment amongst many traders.
It has been noticed that many traders now believe Bitcoin is heading towards the $9,000 level over the short term, as noted by Cointelegraph, as bulls will attempt to push Bitcoin price to the upper Bollinger Band at the $8,983 level.
Furthermore, some analysts believe that a return to the $9,000 level could see the digital currency ascend to the $9,112-9,200 range, with a potential upward move to hit $9,600 in case momentum is restored.
On the other hand, a fall below $8,470 could further push Bitcoin deeper to the 200-day moving average at $8,200, with main support seen at $8,124 and the 50-day moving average at $8,000, and further below at $7,600 then $7,200.