Bitcoin Shows Declining Signal and It is at Risk of a Huge Retracement

News / 20.02.2020

The price of BTC/USD could not surge past $10.2k. Hence, the pair experienced a heavy decline under $9.8k and it is currently at risk of a bigger retracement.

In the previous day, it was noted that $10.2k is a crucial barrier zone. There were two trials to surge past barriers at $10.2k and $10.3k.

Nevertheless, the buyers could not secure momentum over $10.2k. The pair was able form a swing high close to $10.3k and there was a decline in price under $10k support zone.

Furthermore, a look at the hourly chart of BTC against the USD revealed that the main declining trend line in the previous day became a powerful barrier close to $10.2k. The pair declined by 5 percent and traded under $9.8k and $9.7k.

The pair continued to the downside under $9.5k support zone and attained a fresh weekly low at $9,344. A look at the upside revealed several critical barriers starting with $9,750. The initial major barrier is close to $9.8k and $9,820.

Hence, there is need for the pair to surge past the barrier at $9,820 for a new attempt to move above the barrier at $10.2k.

The failure of the pair to extend the upside moves over $9.8k and $9,820 poses a risk of additional declines. The first support is close to $9.5k.

If the price closes under $9.5k, it could push the pair in a declining zone. If the price enters the zone, the sellers could focus on a test of the $9k support zone.

Featured image courtesy of Shutterstock. Source: Cryptopress.

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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.