The cryptocurrency market was relatively calm over the weekend as correction sets in for most of the digital assets, especially Bitcoin’s rejection on a $16,000 attempt. However, BTC/USD returned from support at $14,500 as buyers’ focus on recovery from seeking a market bottom. After a $16k attempt, BTC/USD stays range-bound as long term volatility stays intact. The lead crypto registers an intraday high at $15,856 and has a current total value of $280.17 million, with $33.25 million in trade volume over the past 24 hours. Following an impressive prior week, BTC achieved a new yearly high of $15,977. BTC/USD is presently trading at $15,049 as its recovery lost steam. Bitcoin sell-off accelerates on Coronavirus vaccine optimism amid decreasing bids for safe-haven assets. Investors are leaning towards a bullish US Dollar Index (DXY). Pfizer, a pharmaceutical company, and BioNTech SE – its partner – showed positive results in their vaccine trials against the novel coronavirus.
*BTC/USD returned from support at $14,500 shifting buyers’ focus to recovery from seeking a market bottom
*After a $16k attempt, BTC/USD stays range-bound as long term volatility stays intact
*Bitcoin sell-off accelerates on Coronavirus vaccine optimism amid decreasing bids for safe-haven assets
Resistance Levels: $17,000, $16,500, $16,000,
Support Levels: $15,000, $14,500, $14,000
BTC/USD Daily Chart: Bullish
BTC/USD Daily Chart
After a downside correction, BTC found support near the $14,500 level. BTC traded as low as $14,380 and started a steady upward move reaching an intraday high at $15,856 before the $16,000 resistance levels. If the price fails to stay afloat at the mid $15,000, there is a risk of a fresh decline. Initial support is at the $15,000 level and may reduce the selling pressure.
The recent low at $14,380 established may act as a potential level, followed by $14,500 as the support area between $14,000 and $15,000 that outweighs the resistance range at $15,500 – $16,000. Considering that the daily MA 50 and MA 200 remains bullish, a breakout above $16,000 could drive Bitcoin price towards $20,000.
BTC/USD 4-Hour Chart: Bullish
BTC/USD 4-Hour Chart
On the 4-hour time frame, BTC/USD has staged a technical pullback, with the lead cryptocurrency retracing back beneath the $15,000 support. The sudden plunge in BTC/USD appeared to coincide with the coronavirus vaccine optimism. Technical analysis suggests that BTC has the potential to rally towards the $16,000 to $20,000 area over the medium-term.
On the flip side, expectations of a Bitcoin correction, a downside break beneath the $15,000 risks a drop towards the $14,500 and $14,000 support levels in the coming sessions. The BTC/USD pair is only bullish while trading above the $14,500 level, with resistance, found at the $15,500 and the $16,000 levels. If the BTC/USD pair trades below the $14,500 level, sellers may test the $14,000 and $13,500 level.
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