Is this the beginning of another price decrease in Bitcoin or a buying opportunity?
The price of Bitcoin formed a short-term high near $ 10,200 and recently declined against the US dollar. BTC could continue to decline, but the bulls are likely to remain active above $ 9,500.
Bitcoin is slowly correcting below $ 10,000 and $ 9,850 against the US dollar.
The price even broke the $ 9,800 area and could extend its correction downwards.
A key decreasing channel is being formed with a resistance close to $ 9,785 on the hourly chart of the BTC / USD pair (Kraken data).
There are chances of a bearish rebound towards $ 9,500 before the bulls stand up.
Bitcoin could extend its correction
Recently, we saw a break above $ 10,000 in bitcoin against the US dollar. However, the price of BTC failed to eliminate the resistance of $ 10,200 and a new high was formed in 2020 near $ 10,201.
The price began a downward correction below the $ 10,000 level and the simple moving average of 100 hours. In addition, the bears were able to lead the price below 50% of the Fib retracement level of the upward movement from the low of $ 9,659 to the maximum of $ 10,201.
The recent decline was such that Bitcoin even traded below the $ 9,850 support level. At the beginning, a key decreasing channel with a resistance close to $ 9,785 is being formed on the hourly chart of the BTC / USD pair.
More importantly, the price is traded below the Fibonacci retracement level of 76.4% of the upward movement from the minimum of $ 9,659 to the maximum of $ 10,201. Therefore, there is a risk of a downward extension below the minimum of $ 9,659 in the short term.
The next great support for bitcoin bulls is seen near the $ 9,530 and $ 9,500 levels. In addition, the 1,236 Fib extension level of the upward movement from the low of $ 9,659 to the high of $ 10,201 is also close to the $ 9,530 level.
Any additional loss could set the pace for a larger bearish wave, possibly toward the $ 9,200 support area in the short term.
The bulls are still in control
The recent decline in bitcoin could be seen as part of a downward correction from the maximum of $ 10,201. The $ 9,500 support area could play an important role in the short term
It is only when the price falls below $ 9,200 and $ 9,000, the bulls should begin to worry about a downward trend change.
MACD per hour: MACD is slowly gaining momentum in the bearish zone.
RSI (Relative Strength Index) per hour: the RSI for BTC / USD is sliding and is now below level 40.
Main support levels: $ 9,650 followed by $ 9,530.
Major resistance levels: $ 9,850, $ 10,000 and $ 10,200.
The cryptocurrency ecosystem is an exciting world, blockchain-bitcoin technology can help generate high expectations for investors, likewise, the financial problems of the leading countries in the economy are not having a good time, political discrepancies between the hegemonic powers This is what they let us see, it is possible that bitcoin will continue to rise in its prices, therefore it can be said that it is time to buy. It is expected by new announcements.
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.