Bitcoin Struggling to Break above $10,000 area after Bullish Gap today which started the week above $10,000 area. A daily close above $10,000 help sustain. Let’s check Bitcoin Technical Analysis for more levels and insights.
February 10, 2020 | AtoZMarkets.com – Bitcoin opened the week with a Bullish Gap, starting the day above $10,000 area. The price had confluence from the dynamic level 20 EMA, which carried the price all the way above $9500 area.
Bitcoin has been steady and stable while pushing higher after it broke above $9500 area. Bitcoin managed to break above $10,000 area with gap but could not sustain the Bullish pressure. The price dipped below $9700 area recently but also managed to regain momentum and reside at the edge of $10,000.
The impulsive Bearish pressure did confuse the Bulls for a while after it pushed the price lower drastically. But as the price managed to regain momentum higher, it showed light of sustainability of the Bullish trend.
Bitcoin Struggling to Break may lead to Correction
Bitcoin is currently trying to break above $10,000 area again with strong Bullish pressure. Though recent Bearish pressure was quite impressive but the bounce back was also quite remarkable.
image: Bitcoin 1 hour chart
According to 1 hour chart, the dynamic levels which acted as confluence earlier is currently intersecting the current candles. After the impulsive Bearish pressure, the price regained momentum without any delay which indicates the presence of Bulls in the process.
The price struggling to maintain Bullish momentum communicates presence of Bears along the way. The MACD lines crossing each other indicating Bearish pressure may lead to certain correction. As the Bullish bias remains intact, Bitcoin break above $10,000 is highly expected. Moreover, a daily close above $10,000 can lead the price much higher with target towards $12,000 in the coming days. As there is no sign of Bearish Divergence along the way, not much of Bearish pressure may occur along the way.
Bitcoin may Retrace to $9500 price again
image: Bitcoin Daily chart
According to daily chart, the price is currently showing certain Bearish pressure from $10,000 area. As the price progressed higher after bounce from $8200 area, it formed Bearish Continous Divergence. As per current Divergence in place, the price may retest $9500 area in the coming days to find confluence to push much higher.
Currently, the price action did manage to reject strong Bearish pressure along the way but still it is indecisive. So, until the price makes a daily close above $10,000 area, further correction is expected.
To conclude, Bitcoin pushing below $10,000 after the Break lead to certain correction. A daily close above $10,000 will confirm further upward pressure or else it may retrace towards $9500 before pushing up again.