Bitcoin Showing Initial Signs of a Big Retracement

News / 31.01.2020

The price of BTC/USD surged over $9.4k and $9.5k, thereby attaining a fresh high in 2020 at $9,569. The price now is revealing signs of a downside retracement.

In the previous day, the pair was over the $9.2k support thereby extending its upward move over the barrier at $9.4k zone. It continued to the upside over the barrier at $9.5k and attained a fresh yearly high at $9,569.

Nevertheless, the buyers could not stay over $9.5k. A crucial observation on the hourly chart of BTC against the USD is the breaching of this week’s critical buying trend line with support close to $9,420. Hence, it appears the pair is getting ready to begin a downside retracement beneath $9.4k.

The next support is close to $9,360. The initial major support is close to $9,260, beneath which the sellers could visit the support zone at $9,150.

The price could further decline beneath the support at $9,150. If successful, the price is at risk of a huge downside retracement beneath the support zone at $9k.

Recently, the price broke beneath the trend line and $9.4k but may be false. The buyers need to take the price over $9,480 and $9.5k for the beginning of another uptrend.

If the price closes over the barrier at $9.5k, it could lead to a run towards the major $10k barrier zone. The intermediate barrier could be close to $9,850.

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.