- The pace of the Bitcoin price increase has started to show signs of stalling after it increased by a small 5% this week.
- The cryptocurrency continues to find resistance at the $10,400 level as it continues to fail to break above.
Bitcoin has started to show signs of weakness at $10,400 as it continued to fail to make any ground above the resistance. It has dropped by a total of 1.3% over the past 24 hours of trading as it drops into $10,235.
The cryptocurrency has seen wonderful growth throughout 2020 as it increases by around 50% since the start of the year. However, many altcoins are outpacing Bitcoin by a significant margin and this is evidenced within the BTC Dominance taking a tumble over the past 2 weeks.
Bitcoin Price Analysis
BTC/USD – Daily CHART – SHORT TERM
Taking a look at the chart above, we can clearly see the Bitcoin bull run in full effect. The cryptocurrency started the year at a price of around $7,000 and has managed to climb as high as $10,522 during this month.
However, we can see that Bitcoin is developing some signs of weakness at the $10,432 level. This resistance is provided by a 1.618 Fibonacci Extension level and BTC continues to fail each time it attempts to break, and close, above the aforementioned level.
Short term prediction: BULLISH
The market still remains bullish and it would need to drop beneath $9,800 for this bull run to be invalidated. On the other hand, it must break the $10,432 resistance soon to remain in a bullish trading condition.
If the sellers push beneath the support at $10,180, the next level of support lies at $10,000. Beneath this, additional support lies at $9,814, $9,637 (.382 Fib Retracement), $9,500, and $9,366 (.5 Fib Retracement).
On the other hand, if the bulls regroup and push higher, the first 2 levels of resistance lie at $10,432 and $10,522. Above this, resistance lies at, $10,730, $10,925, and $11,000.
Support: $10,180, $10,000, $9,814, $9,637, $9,500, and $9,366.
Resistance: $10,423, $10,522, $10,730, $10,925, and $11,000.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
Yaz is a cryptocurrency technical analyst and has been actively trading financial markets for over 7years, with 4 years of crypto experience. He is an Economics graduate who has taken a keen interest on the future potentials of blockchain in the financial industry. Aside from cryptocurrency and trading Yaz enjoys spending his time watching his favourite football team (Liverpool F.C.) compete as well as keeping up-to-date with the UFC. Follow him at @TcmYaz.