According to the latest technical analysis, the current uptrend of Bitcoin (BTC) is fortunate that it has not been completely stopped even after being strongly suppressed during the sell-off from the peak of $ 10,200 on 10 / 02.
The world's largest market capitalized cryptocurrency rose to near the threshold of $ 10,200 and then sharply corrected to $ 9,730 on Monday (February 10). Bitcoin for the next 24 hours largely fluctuated in a price range from $ 9,750 to $ 9,00.
BTC ended the trading day with a decline of up to 3.18%, making it the second biggest devaluation day in 2020, following the 3.2% drop on January 23.
Many analysts have failed to hide the disappointment of Bitcoin's long-awaited rally above $ 10,000. Derivative trader John Wick said on Twitter: “It's heartbreaking to see the BTC break less than 24 hours after conquering the $ 10k mark.”
Even so, the upward trend from the bottom of $ 6,850 in January is still intact, when the price has yet to penetrate the support of $ 9,075 – the bottom of February 4.
As long as this level of support continues, the least obstacle for Bitcoin at the moment will still be upward.
Daily graph of Bitcoin price
As stated in our analysis yesterday, Bitcoin has formed a pattern that reverses the price trend at the top of a bull cycle, marked by a long red candle that covered the previous green “marubozu” candle.
Peak breaks like these often clear the way for deeper corrections of the market.
Hourly graph of Bitcoin price
Bitcoin broke through the neckline support of the head and shoulders pattern on the hourly chart today (February 11). However, the current BTC price remains above $ 9,700.
However, this negative signal may soon invite the sell-off force in the market, pushing the cryptocurrency to lower prices. In the immediate future, there are important support levels at $ 9,586 (November 4 peak) and $ 9,075 (February 4 bottom).
The growth scenario in the market will be restored if BTC rises to $ 10,000 again, disabling the low top pattern that is forming on the daily chart.
Remember that corrections are common in the bull market and will create a “break” for prices to consolidate what has been achieved before proceeding further.
This happened in January, when BTC dropped from $ 9,188 on January 19 to $ 8,200 five days later, before triggering a recent rally to $ 10,000.
Although this correction is likely to continue, it is likely that the support level of $ 9,075 will be preserved as long as the current week's chart still shows many positive signals.
Weekly graph of Bitcoin price
Bitcoin has been growing strongly in recent weeks, breaking out of the downward price channel that lasted from mid-2018.
As a result, the MACD indicator has established successive green columns, proving the increasing motivation for growth. The 5 and 10 week moving averages (MA) continue to move upward, in favor of an uptrend.
Overall, the weekly chart remains the same scenario where Bitcoin price will rise to a peak of $ 10,350 in October 2018.
- Bitcoin's long-term uptrend remains intact despite an adjustment from $ 10,2000. The weekly chart leaves open the possibility that BTC will recover to its peak of $ 10,350 in October 2018.
- However, the probability that BTC will be adjusted to $ 9,500 before resuming the rise is not small, because the short-term charts all return results showing that the buying force in the market is almost no longer available.
- The bullish scenario will be smashed if Bitcoin drops below the support of $ 9,075 (February 4 bottom).
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