Bitcoin price traded to a new 2020 high at $9,616 and recently corrected lower. BTC to USD is now approaching a couple of important supports near the $9,225 and $9,170 levels.
Key Takeaways: BTC/USD
- Bitcoin price is currently correcting lower after setting a new 2020 high at $9,616 against the US Dollar.
- BTC/USD is approaching the $9,225 support and a connecting bullish trend line on the 2-hours chart (data feed from Bitstamp).
- Ethereum is also correcting lower from well above the $192.00 and $194.00 levels.
Bitcoin Price Analysis
Recently, bitcoin price gained traction and broke the $9,520 and $9,580 resistance levels. BTC to USD even spiked above the $9,600 level and traded to a new yearly high at $9,616.
Looking at the 2-hours chart, bitcoin failed to remain above $9,600 and it recently started a downside correction. There was a break below the $9,400 and $9,375 levels. Besides, there was a break below the 50% Fib retracement level of the last leg from $9,140 to $9,616.
The price is back below the $9,350 level and the 50 simple moving average (2-hours, purple). However, there are many supports on the downside near the $9,225 and $9,220 levels.
More importantly, bitcoin price is approaching the $9,225 support and a connecting bullish trend line on the 2-hours chart. The 76.4% Fib retracement level of the last leg from $9,140 to $9,616 is also near the $9,252 level.
Therefore, the price is likely to find a strong buying interest near the $9,225 and $9,200 levels. The next major support is near the $8,845 level since it is close to the 1.236 Fib extension level of the last leg from $9,140 to $9,616.
Any further losses may perhaps push the bulls on the back foot and the price might decline heavily towards the $8,400 level. Conversely, bitcoin price is likely to stay above the $9,225 and $9,200 support levels.
As long as there is no close below $9,225, bitcoin price is likely to bounce back above $9,500 and $9,620 in the coming sessions.