Bitcoin May Experience a Huge Rally

News / 03.02.2020

The price of BTC/USD gained massive momentum and surged over the barrier at $9,550 resistance to nullify a major head and shoulders pattern. It appears that the pair is positioned for a huge rally over $10k.

Last week, the possibility of head and shoulders pattern was discussed last week for the pair under $9.5k. The price moved to the downside under $9.3k, but the sellers could not take the price under the major support at $9,150.

Hence, the buyers became dominant, thereby pumping the price over $9.4k. Further, the price was able to break the barrier at $9.5k and the 100 hourly SMA.

There was the formation of fresh high this year close to $9,609 prior to some losses. It was able to revisit the $9,250 zone and extended the downside move to form a low close to $9,232.

A look at the hourly chart of BTC against the USD shows the formation of a connecting bullish trend line with support close to $9,280. Hence, it appears that support exists close to $9,280 and $9,240.

The major support remains close to $9,150 and a move under it poses a risk of a huge downside retracement to $8.8k or even $8.6k.

The barriers that exist at $9.5k and $9,550 are quite essential. If the price closes over the two barriers, it will lead to more upsides towards the $10k barrier zone.

Any additional gains over $10k could lead to $10.4k barrier in the sessions ahead. On the other hand, if the pair keeps striving close to $9.5k and $9,550 barrier, there is a risk of declining beneath $9,240 and $9,150 support soon.


Source: Cryptopress.

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.