BTC Breaking above $11,000 To Take A Little Longer

News / 13.02.2020

The BTC/USD pair has maintained its upswing, getting closer to the $10.5k mark. There are, however, exhaustion signals from the pair, creating a possibility of some few points of decline preceding further upswings.

BTC Bullish Run

The week saw the pair bounce back strongly, surpassing the $10k hurdle. With a continued price surge, the $10.2k and the 100 hourly SMA were categorically broken.

A recent bullish run pushed prices ever closer to the daunting $10.5k barrier. Even though, the bullish momentum broke, it still created a new 2020 high bordering the $10,492 mark. This is now correcting to a lower figure.

Break In Momentum

This support lies near $10.4k but the initial underlying key support stands lower, closer to $10,350. The hourly chart of BTC against the USD in turn points towards the formation of a short-term rising channel whose backing lies at around the $10,350 mark.

When the upswing is observed, the daunting $10.5k barrier faces the pair. Buyers also seem to have exhausted their purchase momentum signifying the possibility of short-term slump below $10,350.

On the other hand, the downswing shows the major support hovering near the $10.2k mark where buyers could become active. Further declines imply the possibility of a lower support zone near the $10.1k mark

As a follow up to the current retracement tide, price may swing back, glossing over the $10,450 and $10.5k marks. The next target will definitely be $11k, provided the move above the $10.5k mark.

An intermediate $10.8k barrier would be feasible. But if the pair’s current price action is anything to go by, a minor decline towards $10.2k or $10.1k is to be anticipated before a bullish run towards $11k kicks in.

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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.