Bitcoin May Retrace Towards $9500 Mark

Bitcoin has a daily close below the $10,000. Therefore, it is likely that Bitcoin may retrace towards $9500 before moving higher again. Let’s check Bitcoin Technical Analysis for more levels and insights.

February 10, 2020 | – Bitcoin opened the week above the $10,000 area with a bullish gap. Later on, the price managed to fill up the gap with a daily close below the $10,000 area. As long as the overall outlook is bullish, Bitcoin may break through the $10,000 level again after a certain correction towards $9500. 

The recent price action of Bitcoin indicates that the price had an impulsive bearish pressure from the $10,000 level. After an hourly close below the $10,000 level with filling up the gap, Bitcoin managed to test the $10,000 level again before going indecisive. 

Therefore, the price action became confusing to buyers as there is a counter impulsive movement from the $10,000 level. However, there is no clear sign about upcoming bearish pressure in the price, so, the current bullish momentum may continue.

Bullish Bias of Bitcoin is Still on Track

The recent impulsive bearish pressure from $10,000 level is not enough to say that Bitcoin has completed the bullish sentiment. As long as the price is above the $9500 area with the confluence support of 20 EMA, the overall outlook is bullish.
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According to the 1-hour chart, the dynamic levels are acting as resistance. Therefore, the price is likely to move downside if there is any rejection from dynamic levels. The Bitcoin price just touched the dynamic level of 20 EMA and Tenkan Sen, where Kijun Sen is approaching the price. On the other hand, the 9700 levels are acting as a near term event level. Therefore, if price rejects the confluence resistance levels with an hourly close below 9700, it is likely that Bitcoin may retrace towards $9500. 

Moreover, the MACD crossed over at the bearish zone with squeezing the bearish pressure towards the neutral zone, which indicates that the price is facing some buyers’ interest at $9700 level.

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Bitcoin is Heading Towards $9500

According to the daily chart, the price is currently showing certain Bearish pressure as it closed below the $10,000 area with a daily candle. As the price progressed higher after a bounce from $8200 area and had a strong bullish breakout above $9500 area, the overall outlook is still Bullish. As per the continuous Divergence in place, the price may retest $9500 area again before pushing further upside.

Currently, as the price is facing a bearish pressure from the $10,000 levels, it has a higher possibility to test the $9500 area again before continuing the current momentum. 

To conclude, Bitcoin had a daily close below $10,000 and tested the level on the intraday chart. A daily bearish rejection from $9500 will confirm further upward pressure. However, a strong bearish close below the $9500 may alter the scenario. 

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