Bitcoin had a brief rally yesterday causing the cryptocurrency to break above $ 9,600, after which almost immediately a significant selling pressure was created causing BTC to plunge to the 9,200 area. dollars.

The bulls are unable to decisively close the cryptocurrency above the critical resistance at $ 9,500, it's likely they're losing strength, and maybe even the cryptocurrency will drop significantly below before buyers could catalyze another rally.

Analysts are currently noting that this latest rejection appears to indicate that the BTC uptrend of 2020 has ended and that the cryptocurrency may soon see a major retreat to its yearly lows.

Bitcoin price has pullback potential of about $ 7500

At the time of writing, Bitcoin is trading down 1.2% at its current price of $ 9,281, marking a notable retreat from the daily high – over $ 9,600, set at the top. of yesterday's demonstration.

Bitcoin price today. Source: Coinmarketcap

The fleeting nature of this rally will likely cause trouble for Bitcoin's next trend, as it is likely that BTC will not surpass the $ 9,500 resistance level.

In the short term, analysts agree with this view, noting that the recent sell-off has changed the price action of BTC to a sharp decline.

HornHairs, a well-known analyst on Twitter, explained that BTC will see some more disadvantages before it reaches a solid liquidity range.

“The price has exceeded the highs of the previous month and the whole November, and now it is lower than the monthly opening. I will probably work from the downtrend this week, it seems the gap to achieve liquidity is still very far, including some gaps that have not been filled on the CME chart. ”

This short-term decline can fundamentally alter the bullish market structure that BTC has formed over the past few weeks, potentially bringing it back to the $ 7,000 area.

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Teddy, a well-known analyst on Twitter, talked about this in a recent tweet, that Bitcoin could not reach a higher level in the recent rally showing the impending major decline.

“The previous candle was weird, because it went from 8 to 9 seconds – causing a storm of excitement, upheaval and FOMO. Technically, this rally is not large enough as it has been denied resistance and therefore could not reach a higher level. ”

However, there are 7 reasons why Bitcoin could explode to over $ 10,000.

For the past few days, Bitcoin has stalled in a low of $ 9,000, unable to venture out of the range that it has been stuck for the past four days. The chart below from TradingView clearly shows this “non-action” move.

bitcoin-usd

Although some say this price action is a sign that Bitcoin is about to return to $ 8,000 and the bears will take over. A leading analyst, Coiner Yadox, who correctly predicted the market price action, recently gave 7 major reasons why BTC can break to a higher level of $ 10,000 in the near future, restart the uptrend.

7 reasons why BTC may soon explode to higher levels

Here are 7 of the more than 20 reasons why Bitcoin could soon rise higher, according to Yadox.

  • BTC recently confirmed a monthly support of the exponential moving average (EMA) of 21 months, then closed above the 10-month EMA. This was underlined by the fact that Bitcoin reached a higher level in monthly closures, smashing the downtrend.

“Confirm monthly support at the 21-month EMA and close above the 10-month EMA

At the same time, BTC also established a higher monthly close. ”

  • Bitcoin's relative weekly strength index (RSI) has recently surpassed the 55 threshold, which historically has been a “turning point” for the market; when the RSI is above 55, technically, BTC is entering a bull market.
  • The leading cryptocurrency has moved above the 200-day moving average. Yadox says this is a sign of a bull market and Tom Lee of Fundstrat agrees.
  • The 50-day EMA and the recent 200-day EMA have witnessed a bullish cross.
  • The weekly Super Guppy indicator has begun to tend to turn green, often signaling a historical bull market.
  • Bitcoin's Ichimoku Cloud has turned green, indicating a growing trend.
  • The price reduction will occur soon, which will reinforce the long-term upward trend as the upcoming halving will cause a sharp drop in supply, affecting supply-demand dynamics in the market.
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On Sunday, analyst Filb Filb – trader in October 2019 predicted Bitcoin soaring to $ 10,000 and then falling to $ 6,000 – posted the chart below on his Telegram channel.

He said that the charts create “a pretty good prospect for price increases” because “the volume indicators are very positive”, not to mention the “moving averages are sloping up”. Filb Filb went on to say that his monthly chart, combined with a proprietary indicator that is showing buy signals, “was a huge price increase in the past”.

Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

Huyen Dinh

Bitcoin Magazine | Newsbtc

• Updated news at Telegram

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