Bitcoin Price Could Correct Further Before Fresh Rally
After a strong rally, bitcoin price started a downside correction below the $10,000 level. BTC to USD could test the $8,850 support area once again before a fresh rally.
Key Takeaways: BTC/USD
- Bitcoin price is showing a lot of bullish signs above the $8,850 and $9,000 support levels against the US Dollar.
- BTC/USD is approaching the $9,300 support and a connecting bullish trend line on the 2-hours chart (data feed from Bitstamp).
- Ethereum, ripple, and bitcoin cash are also correcting lower, but they remain well supported.
Bitcoin Price Analysis
This past weekend, there was a sharp rally in bitcoin price above the $8,000 and $9,000 resistance levels. BTC even surged above the $9,800 and $10,000 levels. A high was formed near $10,354 before the price started a downside correction.
Looking at the 2-hours chart, bitcoin declined below the $10,000 and $9,800 levels to move into a correction phase. However, the price remained well bid close to $9,000 and the 50 simple moving average (2-hours, purple).
During the decline, there was a break below the 23.6% Fib retracement level of the recent rally from $7,405 to $10,354. However, the $9,000 zone acted as a strong support. The price also found support near the 50% Fib retracement level of the recent rally from $7,405 to $10,354.
At the outset, the price is approaching the $9,300 support and a connecting bullish trend line on the same chart. If there is a downside break, the price could retest the $9,000 and $8,850 support levels.
The main support is near the $8,800 zone, below which there is a risk of an extended decline towards the $8,280 support area. An intermediate support is near the 61.8% Fib retracement level of the recent rally from $7,405 to $10,354.
On the upside, an initial resistance for bitcoin is near the $9,800 level, above which there are chances of a sharp rally. The next stop for the bulls could be near the $10,350 and $10,500 levels. In the short term, there might be another decline towards the $9,000 and $8,800 support levels, but the price is likely to remain well bid.