Bitcoin Just Signaled “Sell” And It’s Vulnerable to a Massive Correction

Aayush Jindal

1 year ago

2 mins read

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Bitcoin failed to climb convincingly above $10,200 against the US Dollar. As a result, BTC declined heavily below $9,800 and it is now vulnerable for a bigger a correction.

Bitcoin price failed to clear the $10,200 and $10,300 resistance levels against the US Dollar.
There was a sharp decline below the $10,000 and $9,800 support levels.
Yesterday’s major bearish trend line acted as a strong hurdle near $10,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair is currently consolidating losses and it might face sellers near $9,800 if it corrects higher.

Bitcoin Reversal Could Be a Game Changer

Yesterday, we discussed the importance of the $10,200 resistance area for bitcoin against the US Dollar. BTC price made two attempts to clear the $10,200 and $10,300 resistance levels.

However, the bulls failed to gain traction above $10,200. A swing high was formed near the $10,300 level and the price declined heavily below the $10,000 support area.

Moreover, yesterday’s major bearish trend line acted as a strong hurdle near $10,200 on the hourly chart of the BTC/USD pair. The pair fell more than 5% and traded below the $9,800 and $9,700 levels.

Similarly, there was a strong decline in Ethereum below $270 and ripple dived below $0.2850. Bitcoin even spiked below the $9,500 support area and traded to a new weekly low at $9,344.

It is currently correcting higher above the $9,500 level, plus the 23.6% Fib retracement level of the recent decline from the $10,301 high to $9,344 low. On the upside, there are many important hurdles forming for the bulls, starting with the $9,750 level.

The first key resistance is near the $9,800 and $9,820 levels. Besides, the 50% Fib retracement level of the recent decline from the $10,301 high to $9,344 low is near $9,823 to act as a strong resistance.

Therefore, bitcoin price must clear the $9,820 resistance to make another attempt for a clear break above the $10,200 resistance.

More Losses?

If BTC fails to continue above the $9,800 and $9,820 resistance levels, there is a risk of more downsides. An initial support is near the $9,500 level.

A daily close below $9,500 might push bitcoin in a bearish zone. In the mentioned case, the bears are likely to aim a test of the $9,000 support area.

Technical indicators:

Hourly MACD – The MACD is now gaining strength in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well below the 40 level.

Major Support Levels – $9,500 followed by $9,200.

Major Resistance Levels – $9,750, $9,800 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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