Bitcoin extends sideways grind below $9,500, looks to end week around 9% higher
- Bitcoin rose nearly 30% in January to start 2020 on a strong note.
- $9,500 - $9,600 area aligns as next critical resistance ahead of $10,000.
Bitcoin closed the day virtually unchanged a little below $9,400 on Saturday as investors seem to be staying on the sidelines while waiting for the next significant catalyst. As of writing, the pair is trading at $9,340, erasing 0.4% on a daily basis. For the week, the pair is up 9% after closing the first month of 2020 with an impressive gain of 30%.
Technical outlook
On the daily chart, the RSI indicator continues to move sideways a little below the 70 mark. In the meantime, the 200-day SMA is about to make a bullish cross with the 20-day SMA to confirm the bullish outlook. However, the pair's correction stays relatively shallow since it touched its highest level since late October at $9,568 last Thursday and it could have a difficult time clearing the next significant hurdle in the near-term.
$9,500 - $9,600 area (static resistance, Fibonacci %78.6 retracement of the Oct. 25 - Dec. 18 drop) aligns as the initial resistance ahead of $10,000 (psychological level) and $10.400 (Oct. 26 high). On the downside, supports could be seen at $9,000 - $8,900 (Fibonacci %78.6 retracement of the Oct. 25 - Dec. 18 drop, 200-day SMA) and $8,500 (Fibonacci %50 retracement of the Oct. 25 - Dec. 18 drop).
BTC/USD daily chart
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
