Bitcoin Price Analysis: BTC/USD Is Correcting Before Pump
Bitcoin correction began on February 10. A downtrend has formed on the market. The value of the coin will drop to $ 9,750, after which a new bullish trend will arise.
⦁ The resistance level at $ 10,200 has formed on the BTC/USD chart.
⦁ Sellers broke through support around $ 10,100.
⦁ BTC price is consolidating in the range below $ 9800,000.
Over the past five days, Bitcoin price has been growing steadily. The bulls have overcome the barriers of resistance of $ 9,500 and $ 9,750. The coin exchange rate exceeded $ 10,000 and on February 10 reached a record high for 2020 - $ 10,200 (on the Gemini exchange). However, buyers could not break a new height and a powerful downward trend arose, as a result of which Bitcoin fell in price to $ 9,811.
On the hourly chart, the coin rate is below the uptrend line with support around $ 10,100. Now the cryptocurrency is trading below 23.6% of the Fibonacci level fixed during the pump from $ 9,658 to $ 10,200. At the moment, the asset value is adjusted towards $ 10,000, but bulls will not break through this barrier any time soon.
What Level Will Bitcoin Drop To?
The bearish trend will meet resistance at $ 9930, the next support zone is located at $ 9,850. At this point, there is increased buying activity, in this regard, breaking through $ 9,850 is extremely unlikely.
Despite the short-term negative dynamics, an upward trend dominates the market. Therefore, the downtrend will be temporary and will provide unique opportunities for buying Bitcoin at a lower price. The current bull trend is quite fast, as a result of which the BTC rate will return to $ 10,200 by February 17. A negative scenario (a drop to $ 9,000) is possible only if the price consolidates in the range below $ 9,500.
⦁ 4-hours MACD is in the area of a bearish trend.
⦁ 4-hours RSI index is above 50 (in the neutral area).
⦁ The main support level is $ 9,750.
⦁ The main resistance level is $ 10,100.