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