A Sharp Short-Term Correction Sees BTC Plunge Chances Go High

News / 20.02.2020

The performance of the BTC/USD pair is thriving in a way that its price started increasing sharply over $9.8k and $10k. The ongoing consolidation could soon see the price rally over $10.2k for an immediate bullish wave.

On the previous day, BTC attained a fresh weekly low at $9,483. An upside move began later over barriers at $9.7k and $9.8k.

The buyers successfully built momentum over a connecting declining trend line, $10k, and the 100 hourly SMA. Hence, the price moved towards $10.3k subsequently forming a fresh intraday high close to $10,279.

A correction to the downside under $10.2k is ongoing. However, the existence of several supports is on the downside, closing in on $10.1k and $10,080.

A look at the upside on the hourly chart of BTC against the USD pair shows that $10.2k is the resistance. Additionally, the formation of a declining trend line could happen, with a hurdle close to $10.2k.

Therefore, the price must remain over the barrier at $10.2k to keep up the upside move in the near term. If it continues to the upside, there is the likelihood that buyers will focus on breaking over the wide $10.5k barrier zone.

If successful, the price might even visit the $11k barrier zone in the near term. Failure to move above the $10.2k barrier zone and the trend line might lead to the downside. The initial support is close to the $10k zone.

BTC’s last line of defense is close to $9.9k and the 100 hourly simple moving average. Any further declines could pave the way for a massive downward move to $9,650 and $9.5k.

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Sudarshan M is a long time crypto-enthusiast. Pulled in by bitcoin early on, it did not take long for Sudarshan to divert all of his academic attention from business studies to blockchain by doing his Masters and eventually pursuing his PhD in the subject.