Bitcoin [BTC] price correction gets quickly bought back as price moves above $10,000 again. The bulls got in on the action in a jiffy as it reached highs at $10,300.
On the 4-hour chart it broke above the 50-Period Exponential Moving Average and is currently testing $10,100-$10,150 as support. The price of Bitcoin [BTC] at 3: 30 hours UTC on 19th February is $10,167.
Big Players Buying?
The correction in the last few days saw a considerable sell-off from the retailers. Prominent derivatives and crypto trader, Cantering Clark tweeted,
-Reclaim a majorly significant area within market structure
-Look at that CVD (cumulative volume delta bars), blatant signs of absorption
-Smaller players flip flopping on a 9% pullback and dumping into bigger passive players hands. $
The low for this correction extended till $9,467. It was the above the swing lows around $9000. Hence, maintaining the bullish market structure.
Nevertheless, if it fails to break above the recent high at $10,500, it might continue to range around $10,000 for a while. Moreover, the range around $10,000-$10,200 also forms the area of highest volume profile. The buying and selling interest at this point is considerably high. Crypto trader, Josh Rager tweeted on his bullish plans,
Target hit, took a quick short low leverage for scalp
Excited at $10198
I often will use High volume nodes for a quick support or resistance for scalp play Will usually reject off or break above then back down for a scalp trade
Indeed, $10,000 marks an important psychological level. This is third time the price has broken above $10,000 in February. This time following a healthy pull-back. The FOMO buying of traders and retailers seems on the horizon again.
In the likelihood of bullish continuation, the targets for the bulls is around $10,800 and $11,300-11,700.
On long-term trends, a symmetrical triangle seems to be forming with Bitcoin price with immediate resistance and support at $10,600-10,700 and $7600-8,000 respectively. A break-out above the resistance could be strongly bullish.
How do you think the price will play out next? Share your trading plan with us.
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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