Bitcoin Showing Initial Signs of a Big Retracement
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.