Bitcoin Price (BTC) Holding Key Uptrend Support, Bounce Incoming?
Bitcoin price traded to a new 2020 high at $9,569 before starting a downside correction. BTC to USD is now trading near a major support at $9,170, where the bulls are likely to take a stand.
Key Takeaways: BTC/USD
- Bitcoin price is currently correcting lower from well above the $9,550 level against the US Dollar.
- BTC/USD traded below the $9,400 support and a bullish trend line on the 2-hours chart (data feed from Bitstamp).
- Ethereum is also correcting lower and it could test the $178.00 support area in the near term.
Bitcoin Price Analysis
Recently, bitcoin price climbed further higher above the $9,200 and $9,420 levels. BTC to USD even spiked above the $9,500 and $9,520 levels before setting a new yearly high at $9,569.
Looking at the 2-hours chart, bitcoin failed to continue higher and started a downside correction below the $9,500 and $9,480 levels. Furthermore, there was a break below the 23.6% Fib retracement level of the upward move from $8,865 to $9,569.
More importantly, the price traded below the $9,400 support and a bullish trend line on the 2-hours chart. It opened the doors for more losses and the price tested the $9,220 support level.
It seems like there is a strong support forming near $9,215 and 50 simple moving average (2-hours, purple). The 50% Fib retracement level of the upward move from $8,865 to $9,569 is also near the $9,217 level.
Any further losses below $9,215 and $9,200 might spark a strong decline in the coming sessions. An immediate support is near the $9,030 level since it is the 76.4% Fib retracement level of the upward move from $8,865 to $9,569.
The next major support for the bulls is near the $8,940 level, below which the price could tumble towards $8,500. Conversely, bitcoin price is likely to stay above $9,215 and 50 simple moving average (2-hours, purple).
As long as the price is above the $9,215 and $9,175 levels, there are chances of a fresh bounce in the coming sessions. On the upside, hurdles are seen near the $9,400 and $9,560 levels.