Bitcoin price analysis: BTC/USD attempts a recovery, still well below critical $10,000


  • BTC/USD has recovered from the recent lows, not out of woods yet.
  • A strong move above $10,000 is needed to mitigate the initial pressure.

Bitcoin (BTC) has recovered from the recent low of $9,234 to trade above $9,500 by the time of writing. However, despite the recovery, the first digital coin is still down 11% on a day-on-day basis and substantially below psychological $10,000. 

While the initial sell-off was caused by Libra hearings in the US Senate, the market seems to have overreacted to the comments of the US senators. Moreover, many politicians are positive about digital assets. Thus former Republican congressman and presidential candidate Ron Paul believes that cryptocurrencies are a great idea.

“I’m for the least amount of regulation. I don’t know what’s gonna happen to cryptocurrencies. I think it’s a great idea. And I only have one rule: no fraud […] I think that the government has a role. And somebody has a case that there is fraud, I think it should be investigated […]  What I want to do is legalize the freedom of choice, absent blatant fraud,” he said in the interview with CNBC.

Bitcoin's technical picture

On the intraday charts, the Relative Strength Index (RSI) has left an oversold territory, though it still points downwards.  

The first resistance is created by $9,700 (the middle line of 1-hour Bollinger Band). Once it is cleared, the upside is likely to gain traction with the next focus on $10,000. A sustainable move above this psychological barrier is needed to mitigate the immediate bearish pressure and create a precondition for an extended upside towards $10,300. SMA50 (Simple Moving Average) located on approach to that level might slow down the recovery; 

On the downside, a sustainable move below $9,450 (the lowest level of the previous hour) will trigger more selling orders and push the price towards the recent bottom of $9,234. The next critical support awaits us on approach to $9,000, let's hope, that's where the carnage will stop.

BTC/USD, 1-hour chart

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

Latest Crypto News & Analysis

Editors’ Picks

Crypto Today: Bitcoin claws back its market share

BTC/USD is currently trading at $8,307 (-2.5% on a day-to-day basis). The coin has been moving within a short-term bullish trend during early Asian hours.

More Cryptocurrencies News

Ethereum Classic Price Analysis: ETH/USD bears flip the bulls, target shifts to $5

Ethereum Classic is facing the ultimate correction following a massive bull-run that had it hit January highs around $12 from December lows at $3.41. The persuasive urge upwards has, however, ended in losses due to a lack of ...

More Ethereum Classic News

XRP/USD struggles to save triangle support at its peak

Ripple price struggles to stay above $0.22 support amid a forceful downtrend momentum from recent highs at $0.255. The formation of a falling triangle hints a bullish breakout if its support is defended and XRP bulls allowed to focus on $0.24 resistance.

More Ripple News

The Crypto Sector in selloff mode searches a support zone

Most of the cryptocurrency sector accelerated the losses after breaking the neckline of support that was holding their prices. The selling pressure was in almost all digital assets.

More Cryptocurrencies News

BEST CRYPTO BROKERS/EXCHANGES

Bitcoin Weekly Forecast: Bulls piggy-back on altcoins rally

This week was marked by a strong altcoins rally on the cryptocurrency markets. Bitcoin SV (BSV) and Dash experienced the sharpest price increase over 100% in recent seven days...

Read the weekly forecast

BTC

ETH

XRP