Bitcoin Price Analysis: BTC/USD trapped under short-term trendline; long-term bulls still have nothing to worry about
- Bitcoin's long-term bull trend remains intact so far.
- The critical resistance zone is created by $10,000-$10,100.
Bitcoin (BTC) is changing hands at $9,750, mostly unchanged both on a day-to-day basis and since the beginning of the day. The first digital asset recovered from Monday's low of $9,469, however, an upside momentum faded away on approach to $9,800.
While the long-term trend remains bullish, the downside correction may be extended towards the support of $9,300, which is created by 38.2% Fibo retracement for the downside move from July 2019 high to December 2019 low. This area is likely to withstand the bearish pressure and attract new buyers. However, if it is broken, the sell-off may quickly gain traction and take the price below psychological $9,000 towards $8,850 reinforced by SMA50 and SMA200 on a daily chart.
On the upside, $10,000 is the key bullish target. A sustainable move above this area will mitigate the downside pressure and bring BTC back within the long-term bullish trend with the next focus on $10,500. This barrier may prove to be too hard to be taken out at first try as it has already proved itself as a strong resistance.
BTC/USD daily chart
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On the intraday charts, BTC/USD is moving along a sloping trendline with a short-term bearish bias. The initial short-term resistance is created by the above-said intraday trendline located on the approach to $9,800. Once it is out of the way, the recovery may be extended towards SMA100 1-hour at $9,960, while a decisive move above $10,100 (the second trendline) will signal that the correction is over.
BTC/USD 1-hour chart
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Author
Tanya Abrosimova
Independent Analyst
