- Bitcoin was unable to break through the strong resistance at the USD 9,200 mark on January 18, 2020.
- As a result, the price fell briefly to the support zone of USD 8,470, but appears to be preparing for a second attempt.
Since the beginning of the year, Bitcoin’s price has risen significantly from USD 6.974 to USD 8,661. Analysts are divided on how things will continue. However, short-term indicators point to a bullish trend.
As we reported earlier, after a short term rise to $9,200, Bitcoin has bounced off the strong resistance and in doing so has briefly fallen into the support zone of $8,470. Traders’ sentiment seemed to be tipping over in the short term, but the support was confirmed and a further downward movement towards $8,000 was stopped for the time being. The shorter time frame charts show that Bitcoin is trying to push above the moving average of the Bollinger Band.
Experienced Bitcoin trader Josh Rager also sees Bitcoin trapped in the channel between $8,500 and $8,750 and is currently waiting for a better setup. He is currently concentrating on finding a coin in the Altcoin market that can outperform Bitcoin in the short term.
Bitcoin Trader Satoshi Wolf describes that the Bitcoin monthly chart continues to look bullish. A price drop in combination with a volume decline are bullish signs for him, as is the recent bounce along the USD 8,470 mark. The Bitcoin Halving, which is due in May, is also important for him.
Bitcoin Trader Nik Patel describes that Bitcoin might try to test the USD 9,090 level again at the end of the week, but BTC will meet strong resistance there. If Bitcoin can break through this zone, the price will rise to USD 9,470, Patel said. He also thinks BTC will bounce off this resistance and could create a possibility for a long position towards the 360-day moving average.
Should Bitcoin fail to breach the resistance at $8,800 in the coming hours and the 100-hour SMA, a correction could follow. The initial support is near the $8,670 mark or the channel resistance. The first important support on the lower side is near the USD 8,560 mark. Should this break, BTC will again test the range between USD 8,500 and USD 8,470. Only if this support is not confirmed the bears could regain the upper hand.
Altcoins also tend sideways
After some Altcoins such as Dash, Monero or Chainlink recorded strong rises last week, the bulls seem to be out of breath here as well. No Altcoin, except Ethereum Classic, has seen a major price increase of more than 2% within the top 20 cryptocurrencies by market capitalization in the last 24 hours.
Contrary to expectations, Bitcoin SV was able to maintain its position in 5th place. Craig Wright has repeatedly disappointed the court to date, including in the latest update. The alleged courier did not bring the key to the alleged Tulip Trust, but only an overview of over 16,000 BTC addresses that are supposed to belong to him.
At the time of writing, the market capitalisation of the entire market is 240 billion USD. The trading volume is relatively high at over 91 billion USD.