- 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.