BTC Shows A Possibility to Drop Significantly

News / 31.01.2020

The BTC/USD price rose over $9.4k and $9.5k, reaching a fresh high in 2020, $9569. However, the price is currently revealing signs of a downside retracement. Yesterday, BTC/USD was over $9.2k support, extending its upward move over the $9.4k zone barrier.

It proceeded to the upside over the barrier at $9.5k and reached a fresh yearly high at $9569. However, the buyers could not stay over $9.5k.

A Look at the BTC/USD Hourly Chart

The BTC/USD hourly chart reveals this week’s key buying trendline breaching, with support close to $9420. Therefore, it appears the pair are preparing to commence a downward retracement below $9.4k. The next support is close to $9360, and the initial significant support is close to $9260, below which the sellers could not visit the support zone at $9150.

There might be an additional decline below the support at $9150. If successful, the price is at risk of a significant drop below the $9k support zone. Recently, the price broke under the trend line and $9.4k, but it may not be accurate. 

Buyers need to incline the price to over $9480 and $9.5k to commence another upsurge. If the price closes over the barrier at $9.5k, it may settle at a $10k barrier zone, and the intermediate barrier could be around $9850.

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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.