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Here’s Why Bitcoin Bulls Must Wait For Dip To $9,850 To Enter Again

Avatar Aayush Jindal 4 months ago

Bitcoin price climbed steadily above the $10,000 resistance against the US Dollar. However, BTC could correct lower towards $9,850 before it rallies towards the $10,500 area.

  • Bitcoin is currently facing resistance near the $10,200 area against the US Dollar.
  • The price is now showing signs of a downside correction below the $10,000 level.
  • There was a break below a key bullish trend line with support near $10,100 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • It seems like the bears are eyeing a test of the key $9,850 support area in the near term.

Bitcoin Could Correct In Short Term

In the past few days, there was a steady increase in bitcoin above the $9,500 and $9,850 resistance levels against the US Dollar. BTC even climbed above the $10,000 barrier and settled well above the 100 hourly simple moving average.

Finally, the price tested the $10,200 area and a new 2020 high is formed near $10,201. The price is currently correcting lower below the $10,100 level. It broke the 23.6% Fib retracement level of the recent wave from the $9,658 low to $10,201 high.

Moreover, there was a break below a key bullish trend line with support near $10,100 on the hourly chart of the BTC/USD pair. Bitcoin price is now trading below the $10,050 level.

Bitcoin Price

Bitcoin Price

An immediate support is near the $10,000 level. The first key support is near the $9,930 level since it is close to the 50% Fib retracement level of the recent wave from the $9,658 low to $10,201 high.

The main support is near the $9,850 level, where bitcoin bulls are likely to emerge again. Any further losses may perhaps damage the current bullish market sentiment and the price might slide towards $9,500.

Dips Present Buying Opportunity?

The current price action suggests that bitcoin price is correcting lower from the $10,201 high. If there is a break below the $10,000 support, the price will most likely test the $9,850 support.

Having said that, the price is still in a strong uptrend and a short term correction towards $9,850 could be considered as a decent buying opportunity. Besides, only a daily close below the $9,500 area might start a substantial downside correction.

Technical indicators:

Hourly MACD – The MACD is slowly gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is declining and it is now below the 50 level.

Major Support Levels – $10,000 followed by $9,850.

Major Resistance Levels – $10,150, $10,200 and $10,500.

Aayush Jindal

Aayush is a Senior Forex, Cryptocurrencies and Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis, and has spent over a DECADE as a financial...

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