Bitcoin Price Faces Brutal Rejection Above $9,800

Tony "The Bull" Severino

5 years ago

3 mins read

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Bitcoin price has been smashing through each overhead resistance level with relative ease throughout this entire 2020 rally thus far.

However, the latest push above $9,800 was met with a powerful rejection that sent Bitcoin price back over $200 in a matter of minutes. Could this be the first sign of a reversal?

Bitcoin Price Fails to Breach $9,800 on First Attempt, What Happens Next?

Bitcoin price has rallied well over 50% from lows set back in December 2019 around $6,400. After six months of a downtrend, the rally took many crypto investors by surprise.

The rally has caused Bitcoin to reclaim the 200-day moving average and it has flipped other key resistance levels into strong support.

Just like the rally from $3,100 to $14,000 smashed through resistance levels many thought would be impenetrable, Bitcoin has sliced through resistances throughout the $8,000 and $9,000 range with relative ease and has been well on its way toward a retest of the “FOMO trigger” level of $10,000.

But before Bitcoin price could reach $10,000, it was just swatted back by a powerful, $200 rejection in a matter of minutes.

The hourly candle on Bitcoin price charts shows a candle resembling the lightsaber of Star Wars character Darth Maul, with a long wick at either end.

The 5M chart shows that within 25 minutes of price action, Bitcoin had lost over $200 in value.

Key Levels To Watch For a Bull Market Breakout

The leading cryptocurrency by market cap made another attempt to climb higher as more and more crypto investors enter “buy the dip” mode. However, bears continue to hold the cryptocurrency under $9,800 and push for a reversal to the ongoing uptrend.

If bears are successful in defending $9,800, bulls will need to prove support at $9,500 is strong enough to maintain the rally’s legs, or else another attempt at $10,000 may be put off for a while, while Bitcoin price cools off and refuels its jets.

However, if bulls can hold here, and push Bitcoin through resistance at $9,800, an attempt at $10,000 would be a guarantee, and any break of that critical level would likely spark a full-on bull run.

Bitcoin price would still have to contest with where it was rejected from back in the summer of 2019, at around $14,000. Above there, the only major resistance that lies between a revisit to the all-time high of $20,000 would be $17,000. Beyond those two levels, the sky is the limit for Bitcoin, which could theoretically hit highs of over $100,000 at the next bull market peak.

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

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In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

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Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.