2020 Bitcoin Bullish Rally may Reverse upon reaching $9000 area. The price has been consolidating above $8600 area while falling only $100 short of resistance. Let’s check Bitcoin Technical Analysis for more levels and insights.
January 16, 2020 | AtoZMarkets.com – Bitcoin has been quite impulsive with the recent bullish momentum. It started with a bounce off the $6500 area. The bullish trend has been quite impressive and managed to remain consistent with the upward momentum.
Bitcoin Already Declined 3%
Despite the strong bullish bias in place, recently Bitcoin declined around 3%, which lead the price to reside at the edge of $8600. Though the bullish trend strength is still quite high, there certain chances of strong reversal off the $9000 to $10000 resistance area.
The plunge of 3% did present a question among the investors, “Is the Rally Over?”. According to analyst Big Cheds, “Bitcoin has formed M shaped reversal pattern on 4 hour chart. It also have twizzer top and harami reversal candle formation”. The market has currently turned indecisive rather than confident about the strong bullish trend in place.
Will 2020 Bitcoin Bullish Rally Continue or Reverse?
According to current price action, the bears are trying to push the price lower despite the recent strong bullish pressure. Current bearish momentum is not quite deep if compared to the earlier retracement but having Bearish MACD crossover is an warning sign for the Bulls.
image: Bitcoin 4 Hour Chart
As per 4 Hour Chart, the Bearish Regular Divergence has confirmed with a bearish candle and MACD crossover. Despite certain confirmation, the dynamic support of 20 EMA can hold the price from pushing lower in the process. Bitcoin is currently consoldating above $8600 area where the bears are observed to be slowing down with the pressure. Despite having certain Bearish confluence in place, the price still has greater probability to continue with the trend. The Channel Resistance is still untested as Support and until the price manages to break below $8000 area, the Bullish Bias may continue.
Will Bitcoin Bulls Hold the $8500 Support?
image: Bitcoin Daily Chart
As per our last Bitcoin analysis, the Bullish Rally has great probability to sustain and push towards the strong event level $9500. In the Daily chart, yesterday price closed with a Hanging Man candle pattern and today the price already pushing lower. There is no sign of Bearish Divergence in the higher timeframe but certain retracement may occur as per current price action. After the Channel Resistance was broken recently, it did not retest while current bearish pressure may complete it. Though the overall bias is bullish and pretty strong one but certain retracement above $8000 area is going to make the upcoming bullish moves stronger.
There are still certain indecision and confusion in the market about $9000 being the reversal point. So, having such barrier ahead of the target $9500, a break and close above $9000 is needed. As the price progress higher, the bullish trend will establish much better in the coming days.
To Conclude, Bitcoin below $9000 area is indecisive. A break with a daily close above $9000 will lead the price towards target $9500 sooner.