Disclaimer: This article is not intended as an investment advice and published for educational purposes only. BTC markets are highly volatile and risky in nature. DYOR before making any investment decision rather than listening to a stranger over the Internet.
Bitcoin has (once again) defied the odds and showed its resilience as most of the analysts had been predicting doom days ahead and projecting the price going lower than $1,000. Instead, BTC bounced from $6,425 on Bitstamp to nearly $9,000. There is a confluence of resistance between 9K-10K making a price retracement a somewhat strong possibility; however, a weekly close above $10K will be an equally solid argument for price continuation upwards. There are some mixed signals at this stage and only a weekly close could reveal what Bitcoin will do next.
Let’s dive into an extensive price analysis.
Monthly:
On the monthly TF: 13, 21, and 34 MA are lurking around $6,500, one of the potential reasons why BTC found support there and bounced higher. On the upside, 8MA at $8,941 offered some resistance but gave way to buying pressure. However, only a monthly close above 8MA will signal a strong breach of 8MA. Another major resistance level is at $9,600. If price closes significantly above $9,600 for the month of Jan 2020, it could be a very bullish sign for BTC.
Weekly:
Ah! The most favorite and accurate TF when analyzing Bitcoin, multiple matrices pointing towards strength in BTC price.
It is already significantly above 21MA ($8,464) on the weekly. Many times, a break above the MA brings upsides. Let’s grab some popcorn and watch tomorrow’s close. If the price closes above and stays beyond for another two weeks, it could be significant for upward continuation.
However, since the order block between $9K-10K is a major resistance and psychological level, a close above $10K is more important for BTC than closes above MAs and other resistance levels. However, continuous breaches of the resistance lines will pave the way for Bitcoin to continue moving upwards.
Below is an overview of important support and resistance lines, the story is self-explanatory.
Daily:
On the daily TF, the 200MA at $9,041 is overhead resistance. It’s above all majors MAs on daily such as 50MA, 100MA and waiting for a close above 200MA.
Conclusion:
Bitcoin has shown its resilience once more amid some crazy price predictions of crashing and an incoming secondary bear market in crypto assets. However, no one can predict the market with 100 percent accuracy. Therefore, it is best to take one step at a time and look at the potential support level in case of a fall and next resistance level in case of a rise. Charts tell a story and we are here to decipher it. Bitcoin is facing a major psychological resistance at $9K-10K and surpassing this could be one of the signs of the beginning of another parabolic run in the future.
Disclaimer: This article is not intended as an investment advice and published for educational purposes only. BTC markets are highly volatile and risky in nature. DYOR before making any investment decision rather than listening to a stranger over the Internet.
