Bitcoin Highly Bullish! Bitcoin corrected its lower sharply from the resistance of $10,200 against the US Dollar. Bitcoin is still above the key $9,800 support; it’s expected to rally again soon.
• After touching a new 2020 high, the price of bitcoin corrected lower from $10,807 against the US Dollar.
• The price of bitcoin declined below $10,200 and $10,000 support levels.
• On the four hours chart of the BTC/USD pair, there is a formation of a key bullish trend line near $9,600.
• The pair is supported above $9,600 as well as the 100 simple moving average.
Bitcoin Could Rally Again
The past week, bitcoin upheld a bullish bias above $10,300 area against the US Dollar. Bitcoin price stretched its rally towards the $10,500 level and also settled above 100 simple moving average.
The price went to a new 2020 high at $10,507 before starting a downside correction. The price made several attempts to gain pace above $10,500 but in vain.
It resulted in a bearish reaction below $10,400 and $10,300 levels. Also, the price declined below the support area $10,200. In addition to that, there was a spike below the support area of $10,000.
Bitcoin found support near $9,800 in addition to 100 simple moving average (4 hours). At $9,764, a swing low is formed, and the price is currently rising.
In addition to that, there is a key bullish trend line with support area $9,800 on the four-hour chart of the BTC/USD pair. Now, it’s trading above the 23.6% Fib retracement level.
For the bulls, the initial hurdle is near the $10,140 level. It accords with the 50% Fib retracement level of the correction from the $10,507 high to $9,764 low.
We can say that a break above the $10,140 and $10,200 levels has the potential to open doors for a big upward move in the coming time. In the mentioned scenario, bulls can eye a break above $10,500 and also a test of the $11,000 area.
If we see the downside, the $9,800 support and 100 simple moving average is the key. If a daily close of $9,800 support happens, then bitcoin price may struggle to stay above $9,500 support.
In the bearish case mentioned above, the price is expected to extend its downside correction towards $9,000 support area.
On the brighter side, a break above $10,140 and $10,200 levels can open many doors.
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