Bitcoin Could Rally In Sharp Short-Term Correction
The performance of BTC/USD pair was such that its price started increasing sharply over $9.8k and $10k. Consolidation is ongoing and the price might soon rally over $10.2k for the immediate bullish wave.
In the previous day, a fresh weekly low was attained at $9,483. An upside move began later over barriers at $9.7k and $9.8k.
The buyers secured momentum over a connecting declining trend line, $10k, and the 100 hourly SMA. Hence, the price moved towards $10.3k thereby forming a fresh intraday high close to $10,279.
A correction to the downside under $10.2k is ongoing. Nonetheless, several supports exist on the downside close to $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 a major resistance. In addition, a major declining trend line is being formed with hurdle close to $10.2k.
Hence, the price needs to 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 likelihood that the buyers will focus on breaking over the major $10.5k barrier zone.
If successful, the price might even visit the $11k barrier zone in the near term. Failure to move above $10.2k barrier zone and the trend line might lead to the downside. The initial key support is close to $10k zone.
BTC’s last line of defense is close to $9.9k and the 100 hourly simple moving average. Any additional declines could pave the way for a huge downward move to $9,650 and $9.5k.
Featured image courtesy of Shutterstock. Source: Cryptopress.