Bitcoin Price Analysis – BTCUSD Drops From a New 2020 High

In today’s Bitcoin price analysis, the coin rose steadily to the $10,200 resistance level before correcting lower. However, a rally towards the $10,500 level is likely.

Bitcoin Price Medium-term Trend

Last week, the price of Bitcoin (BTC) was trading in a bullish trend zone. Moreover, there was a steady increase in Bitcoin price above the $9,500 and $9,800 resistance levels. BTC even climbed above the $10,000 level and finally, a new 2020 high was formed near $10,200.

However, after meeting resistance at the $10,200 level, Bitcoin price started a downside correction. The coin broke the $10,100, $10,000 and even dipped below $9,850. It traded close to the $9,650 support and at the time of writing this Bitcoin price analysis, BTC is climbing higher at $9,818.

On the upside, if more buyers emerge, the crypto’s price will rise and retest the $10,000 level. A break above the $10,000 level could see the price surge towards $10,200 and $10,500. Conversely, if there is an extended downside correction, Bitcoin price might test the $9,650 support. Any further downsides might discourage the bulls and the price could dip towards the $9,500 support level.

Meanwhile, the Moving Average Convergence Divergence (MACD) line and the signal line are below the zero line which indicates a sell signal.

BTCUSD Price Short-term Trend

On the 1-hour chart, the price of BTCUSD is in a bullish trend. However, we cannot rule out price pullbacks. That said, a short term correction towards $9,700 could be considered as a decent buying opportunity. Besides, only a break below the $9,500 level might start a substantial downside correction.

Meanwhile, the MACD line and the signal line are below the zero line which indicates a sell signal.

• Resistance Levels: $9,800, $10,000, $10,200
• Support levels: $9,800, $9,500, $9,200

Disclaimer

Arathur Stephen is not registered as an investment adviser with any federal or state regulatory agency. The information above should not be construed as investment or trading advice and is not meant to be a solicitation or recommendation to buy, sell, or hold any cryptocurrencies. The information is solely provided for informational and educational purposes. Always seek the advice of a duly licensed professional before you make any investment.