Did Bitcoin [BTC] Price Front-run $10,000 for a Bearish Correction? Analysts Explain

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The bullish trend in Bitcoin yields a new yearly high for Bitcoin.

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The breakout from the descending channel and 200-Day Moving Average is acting is a strong positive signal for Bitcoin as it continues to make higher lows and higher highs. Moreover, it is now beginning to form an ascending channel.

While Bitcoin looked primed for $10k, it fell short of nearly $250 dollars from the $10,000 mark.  Financial and crypto analyst, Mati Greenspan, analyses how the price might play-out with regards to it. He tweets,

The upward channel we’ve been in since the US airstrike on Iran in Iraq.

Most likely outcome by technical analysis would be a retrace back to support before a pass at $10k… So close but yet so far. Still, an upward break of an upward channel is definitely possible.

BTC/USD 1-Day Chart on Coinbase (TradingView)

Moreover, the other weekly and daily technical indicators are all pointing north. Jacob Canfield, one of the leading traders in the community tweeted,

The $9100 flip was a big deal for #bitcoin.

Former support of the ‘descending triangle’ and the China pump. Ascending triangle forming on RSI with a clear uptrend channel on the daily.

BTC/USD Daily Chart on Coinbase (TradingView)

At 3: 00 Hours UTC on 6th February Bitcoin is trading at $9567. The price is testing around resistance from the highs around the recent closings on Xi-Pump at $9550.

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Long on Alts?

Along with Bitcoin, altcoins have also had a positive run in the last few days. While Bitcoin adds 46%, the total market capitalization of altcoins (exclusing Bitcoin) has gained 70% from the lows this year. Hence, a big pull back or correction is due. However, the current sentiments are highly favoring the bulls.

Bitcoin [BTC] could still top out around the $11,000-$12,800 closing at highs from last year’s pump in June. For bulls looking for entry on longs on alts, TraderXO tweeted that patience is key before adding to further longs.

Not quite sure when bitcoin tops out… but once it sells off I’d imagine quite a few alts will pullback healthily and give some solid entries…

What do you think will come first $10,000 or a correction to $9000? Please share your views with us.

Nivesh Rustgi: Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com
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