There’s no doubt Bitcoin investors across the board are worried right; after Wednesday’s 10% flash crash that took BTC from $10,300 to $9,250, cryptocurrency sentiment shared on social media has been relatively muted, with some sharing their opinion that Bitcoin could be subject to a bear trend.
Despite this, a key chart, which depicts BTC holding about a crucial level of support, indicates that the bull case remains alive for the crypto market. Whether or not that will be translated to another surge higher, though, is yet to be seen.
Bitcoin Bulls Aren’t Giving Up, Not Yet Anyway
Popular trader CryptoDude recently posted the below chart, which shows the leading cryptocurrency’s price action over the past few months on a one-day basis.
While the retracement that has been seen over the past 10 or so days looks bearish, there is a silver lining: Bitcoin has printed three long daily wicks into the $9,300 to $9,500 region, though failed to close a daily candle under $9,500.
This suggests that there remains a large amount of buying demand, adding to the potential for a greater recovery (potentially above $10,000) in the coming days.
$BTC Doesn't want to close below pic.twitter.com/m5z0uY0BgN
— the dude (@cryptodude999) February 22, 2020
Why $9,500 Is So Important
So, this may leave you wondering: why is Bitcoin’s holding of $9,500 crucial for bulls?
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Well, Crypto Bullet, a TradingView analyst, broke down this topic in an extensive analysis published Thursday:
- 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.
Not to mention, Filb Filb, a pseudonymous analyst who has been one of the most accurate in the cryptocurrency space for a number of months now, recently remarked that “every time Bitcoin turns $9,500 to support [on a weekly basis], it goes to $11,500.”
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