Bitcoin Could Rally In Sharp Short-Term Correction

News / 19.02.2020

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.

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Dacosta Osei-Tutu, a first degree holder in Nursing, who couples his Nursing career with blockchain blogging, has a great passion for the blockchain technology and aims to play a vital role in applying this revolutionary technology to disrupt the healthcare system in Africa.