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On Sunday, analysts were starting to flip bullish on Bitcoin. The cryptocurrency, after plunging to $9,250 from $10,300 just days earlier (a drop of 10%), had mounted a recovery to $10,000, rallying higher after flatlining for a number of days.
This reversal, analysts said, might be a precursor to the crypto market surging to fresh year-to-date highs.
Though, true to the ever-volatile nature of BTC, the reversal quickly reversed; within minutes, Bitcoin fell from $10,000 to $9,700. then continued to trend as low as $9,500 just minutes ago as of the time of this article’s writing.
It is likely time to pay especially close attention to the cryptocurrency markets, with a number of analysts indicating that $9,500 is a crucial level of support for Bitcoin bulls.
All Eyes On Bitcoin; $9,500 is a Key Level to Hold
Over the past few weeks, analysts have accentuated the importance of Bitcoin holding $9,500, defining this specific level as “crucial” and “major” support on a daily and weekly basis.
Per previous reports from NewsBTC, TradingView analyst CryptoBullet gave the four following reasons why this level is so important for bulls:
- The region around $9,500 has been a long-time “strong” horizontal level for Bitcoin, often acting as a reversal point for bears when approached from above and a reversal for bulls when approached from below.
- This level is the 0.5 Fibonacci Retracement level of the drop from $14,000 to $6,400. The 0.5 Fibonacci level is often significant in markets.
- $9,500 is a high-volume node per the VPVR.
- The 200 exponential moving average on the four-hour chart is currently sitting around $9,500, just below the current price of the cryptocurrency. Importantly, this level is a moving target as it is a moving average.
This point was further accentuated by trader HornHairs in the wake of BTC’s plunge to $9,500, writing that:
Bulls need to step up here and soon or we lose a critical structure at the $9.5k weekly support.
$BTC isn't done for yet, but after this most recent move back towards support it is hard not to see this as a descending structure with each bounce lessening in strength.
Bulls need to step up here and soon or we lose a critical structure at the $9.5k weekly support. pic.twitter.com/9meoW7T5hX
— HornHairs 🌊 (@CryptoHornHairs) February 24, 2020
A loss of $9,500 is most likely to lead to larger losses, potentially pushing Bitcoin under the $9,000s and into the $8,000s for the first time in weeks, analysts have said.
Featured Image from Shutterstock
