- Bitcoin price hits a snag short of $9,800, leaving room for a retreat towards $9,600.
- Bitcoin’s ascending channel is likely to shape the trend in the coming weeks.
Bitcoin is back in its bullish phase after testing lows close to $9,000 at the beginning of the week. The recovery has brought back the hope that $10,000 is nigh. Besides, many analysts including Fundstrat’s Tom Lee believe that BTC is just at the beginning of a marvelous performance show in 2020. Lee’s firm says that in the past Bitcoin has rallied at least 197% following breaks above the 200-day SMA.
— Thomas Lee (@fundstrat) February 5, 2020
Bitcoin rally on Wednesday broke some key barriers including $9,600 and $9,700. The surge pulled Bitcoin to a high of $9,765 (price level traded beginning of last November). The next hurdle at $9,800 was left untested allowing for a retreat. Bitcoin price is dancing at $9,581 amid a growing bullish momentum.
In spite of the correction from the recent high, Bitcoin is likely to recover, especially now that the bulls know that $10,000 is within reach. The ascending channel has defined BTC’s upward trend since mid-December and could continue to do the same in the coming weeks.
BTC/USD daily chart
The Elliot wave Oscillator in the daily range continues to record a bullish session since January 6. The moving average gap between the 50 SMA at $8,857.67 and the 200 SMA at $8,201.52 is narrowing as a reflection of the growing bullish grip. With the right volume, Bitcoin has the potential to return to levels above $10,000.
Bitcoin Key Levels
Spot rate: $9,595
Relative change: -18.14
Percentage change: -0.14%
Trend: Bullish (BTC’s recovers from the retreat to $9,600).
Support: $9,600, $9,400 and $9,200.
Resistance: $9,700 and $9,800.
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