Bitcoin Price (BTC) Could Dip In Short Term Before Fresh Increase
Bitcoin price declined and corrected sharply from the $10,199 swing high. BTC to USD is now consolidating losses above the $9,780 and $9,800 support levels.
Key Takeaways: BTC/USD
- Bitcoin price is down around 4% from the $10,199 swing high against the US Dollar.
- BTC/USD is holding the $9,780 support level and a connecting bullish trend line on the 2-hours chart (data feed from Bitstamp).
- Ethereum is also correcting lower and trading near the $220.00 support area.
Bitcoin Price Analysis
After a successful close above the $10,000 level, bitcoin price spiked above the $10,150 resistance level. However, BTC to USD failed to continue above the $10,200 resistance area.
Looking at the 2-hours chart, bitcoin topped near the $10,199 level and recently started a downside correction. There was a break below the $10,040 and $10,000 support levels.
Besides, the bears were able to push the price below the $9,900 level and the 50 simple moving average (2-hours, purple). The decline was such that the price spiked below the $9,780 support and traded as low as $9,740.
It is currently consolidating above the $9,800 level. An initial resistance is near the $9,845 level and the 50 simple moving average (2-hours, purple). The 23.6% Fib retracement level of the recent decline from $10,199 to $9,740 is also near the $9,848 level.
On the upside, there is a strong resistance forming near the $9,970 and $10,040 levels. The 50% Fib retracement level of the recent decline from $10,199 to $9,740 is also near the $9,970 level.
Therefore, a successful break above the $9,970 and $10,040 levels is needed for more gains in the coming sessions. The next major resistance is near $10,200, above which the price is likely to surge towards the $10,500 level.
On the downside, the $9,800 area is a strong support. Besides, bitcoin price is holding the $9,780 support level and a connecting bullish trend line on the 2-hours chart.
If there is a downside break below the trend line and the $9,780 support area, there is a risk of a larger downside correction. The next major support is near $9,525.