To continue the current bullish momentum, Bitcoin may show certain bearish correction. After the massive bullish rally from the $8206 to $9500, the Bitcoin price became very volatile. The price is currently moving sideways within a range of $9200 and $9600. Let’s check Bitcoin Technical Analysis for more levels and insights.
February 4, 2020 | AtoZMarkets.com – The volatility in the Bitcoin’s price action is pushing the price to move sideways. After an impulsive bullish momentum price managed to break above the potential $9500 area. However, the recent volatility forced the price to alter the structure with a possibility of upcoming correction. Therefore, the price may face some correction near $9000 before moving higher towards the $10,000 level.
The previous price action of Bitcoin has forced the price to move down as the price reached the potential $9500 resistance area. Therefore, buyers should show a strong intervention before forming the level as a potential double top pattern. As we know, the cryptocurrency market is quite different like the traditional financial market so we may see a violation of patterns due to massive movements. However, the uncertainty in China along with Brexit turmoil is still juvenile. Therefore, we may see buyers’ interest in Bitcoin as many investors consider it a safe haven asset.
Bitcoin May Show Correction Towards $9000
In the daily chart, there is a potential Bearish Continuous Divergence in the Bitcoin price. Therefore, the price may retrace towards the near- term level of $9000 before moving higher. Moreover, the recent speed of bearish pressure is not much to say that there is a strong seller intervention. So, the near term dynamic 20 EMA or Tenkan and Kijun line may act as a support level and any rejection from these levels may push the price higher.
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Primary Target for Bitcoin Buy is $10,000
In the previous price structure, Bitcoin broke the channel resistance and retested it as a support. Moreover, the price is above the Kumo Cloud. Therefore, the bullish bias is very strong with the target of $10,000. However, the price needs to break the $9500 level with an impulsive momentum and with a daily close to continue the Bullish momentum. Moreover, MACD lines in MACD are still indicating an upward pressure with no indication of Bearish Intervention.
On Monday, the daily candle formed as a pin bar but the location of the candle is not satisfactory to indicate any upcoming impulsive selling pressure. However, the price broke the $9500 and tested the $9600 before moving lower to $9270. Therefore, the price is more likely to test the near term support level before resuming the bullish pressure. As per current price action, a strong bearish daily close below $9000 or a dynamic level of 20 EMA may indicate that the price is more likely to move lower in the coming days.
To conclude, Bitcoin may show correction towards the $9000 area again before moving higher above the $10,000 area. Any break above the $9500 area may indicate that the price is more likely to move higher.