- Bitcoin drops to $9,730 level but “retrace is healthy to generate fuel for the next move”
- Next major resistance level could be at $12k while the long term indicator that indicates a bull market on the horizon is expected this week
Last week, we breached the $10,000 level, an area that has seen a lot of trading activity historically, which was last seen four months back. But it wasn’t long that bitcoin took a fall. This tumble took us as low as $9,730 from yesterday’s high of $10,200 on Bitstamp.
This 4.6% drop in BTC price, however, is simply a ‘buy the dip’ opportunity emphasizes industry experts. Trader Crypto Michaël points out,
“It's too funny that everyone turns into panic mode, the moment that crypto retraces a bit. We're up 50% since the low at $6,400. Altcoins even more. A retrace is healthy to generate fuel for the next move. It's even an opportunity. It won't go up in a straight line.”
— Alex (@classicmacro) February 10, 2020
This drop has been to fill the CME gap which as we reported happens more than 95% of the time. 50% of these gaps are filled on the opening day itself as happened today.
Interestingly, Tether (USDT) tops Bitcoin in trading volume at $1.278 billion on top ten exchanges with real volume in comparison to $1.117 billion worth of Bitcoin exchanged in the past 24 hours.
Bitcoin’s losses meanwhile are extended in the crypto market as well except for two cryptos in the top ten cryptocurrencies, BNB and Tezos, both of which are up over 5.50%.
Bull market on the horizon
Now going forward, the crypto market is excited about what has to come but first bitcoin needs to find a base, which obviously could be good for altcoins as we saw in the past few weeks.
“If I had to gander a guess, I'd put the next major resistance level just shy of $12k, right on the 3rd fib level,” said Mati Greenspan, founder of Quantum Economics.
Oh boy. Looks like we're forging ahead here.
If I had to gander a guess, I'd put the next major resistance level just shy of $12k, right on the 3rd fib level.
Also looking forward to a golden cross, which will likely happen this week. pic.twitter.com/giGTMqTYXP
— Mati Greenspan [tweets are not trading advice] (@MatiGreenspan) February 10, 2020
The former eToro analyst is also looking forward to a golden cross, that indicates the potential for a major rally, and according to him it is likely to happen this week.
The golden cross is a technical chart pattern which is a bullish signal that appears when the short-term moving average of an asset crosses above its long-term moving average. In contrast to a death cross that indicates bearish price movement, this long term indicator indicates a bull market on the horizon and is further reinforced by high trading volumes.
Real volume is currently keeping above $1 billion. The 7-day average volume is continuously moving upwards, “after showing healthy signs of a trend shift last week,” notes Arcane Research.
In December, the volume bottomed out only to keep on climbing this week again. We have stabilized around $700 million per day.
However, if the bitcoin price does turn to the downside, the first key support is present at $9,400.