Are Bitcoin Bulls Finally Giving Up? BTC Shows First Signs of a Big Correction

Aayush Jindal

1 year ago

2 mins read

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Bitcoin spiked above $9,400 and $9,500 against the US Dollar. BTC traded to a new yearly high at $9,569 and it is currently showing signs of a downside correction.

Bitcoin price is likely forming a short term top near the $9,570 level against the US Dollar.
The bulls seem to be losing control, but there are still many supports near $9,260 and $9,150.
This week’s crucial bullish trend line was breached with support near $9,420 on the hourly chart of the BTC/USD pair (data feed from Kraken).
There could be a substantial correction if the price breaks the $9,260 and $9,150 support levels.

Bitcoin Bulls Need To Be Careful

Yesterday, bitcoin remained well bid above the $9,200 support against the US Dollar. As a result, BTC extended its upward move above the $9,400 resistance area. The price even spiked above the $9,500 resistance and traded to a new 2020 high at $9,569.

However, the bulls fails to remain in action above the $9,500 level. It corrected lower below the $9,500 level, plus the 23.3% Fib retracement level of the recent move from the $9,167 swing low to $9,569 high.

More importantly, this week’s crucial bullish trend line was breached with support near $9,420 on the hourly chart of the BTC/USD pair. Therefore, it seems like bitcoin price is preparing to start a downside correction below $9,400.

An immediate support is near the $9,360 level. It coincides with the 50% Fib retracement level of the recent move from the $9,167 swing low to $9,569 high. The first key support is near the $9,260 level, below which the bears are likely to eye a test of the $9,150 support area.

The bulls need to be careful if bitcoin slides further below the $9,150 support. In the mentioned case, there is a risk of a large downside correction below the $9,000 support area.

Can BTC Bulls Protect Decline?

The recent downside break below the trend line and $9,400 could be false. To restart the current uptrend, the bulls need to push the price back above the $9,480 and $9,500 level.

A successful daily close above the $9,500 resistance level will most likely open the doors for a run towards the main $10,000 resistance area. An intermediate resistance might be near $9,850.

Technical indicators:

Hourly MACD – The MACD is now back into the bearish zone.

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

Major Support Levels – $9,260 followed by $9,150.

Major Resistance Levels – $9,500, $9,850 and $10,000.

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
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