Bitcoin Price Analysis: How BTC/USD $300 Correction Killed January 2020 Surge?

By John Isige
Published January 16, 2020 Updated January 16, 2020
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Bitcoin Price Analysis: How BTC/USD $300 Correction Killed January 2020 Surge?

By John Isige
Published January 16, 2020 Updated January 16, 2020
  • Bitcoin opens the Pandora box with the retreat to $8,600.
  • The correction to $8,400 might be necessary for the creation of fresh demand to aid in the recovery journey.

Bitcoin is trading 1.34% lower on the day amid a generally retracing cryptocurrency market. The losses occur after a bullish week that saw BTC surge incredibly to highs almost touching $9,000. Most experts had predicted that Bitcoin will increase in value before the May 2020 halving event but none knew that the bull-run will be so soon.

Meanwhile, the snag marginally above $8,900, resulting in Bitcoin losing balance and erasing at least $300. At the time of writing, Bitcoin is trading at $8,692 and seems to be struggling to hold above the short term support at $8,600.

BTC/USD daily chart

BTC/USD daily chart
BTC/USD daily chart by Tradingview

It is apparent that a reversal towards the psychological $9,000 will not come easy. Bullish action to the upside will also run into the resistance at the 200-day SMA. However, the rally has attempted to push the shorter-term 50-day SMA above the 200SMA in a bid to place Bitcoin in a longer-term bullish trend.

Technical indicators such as the Relative Strength Index (RSI) insinuates that the path of least hurdles is towards $8,000. In other words, if the RSI continues to fall in the direction 50 (average), Bitcoin could spiral further and even test $8,400. Expected support areas range from $8,400, the key level at $8,000 and last week’s support at $7,600.

Bitcoin Key Levels

MACD: Sticks within the positive region as bulls fight to take back control.

RSI: Downward slopping suggests growing selling pressure.

Key Support: $8,400 and $8,000.

Key resistance: $8,800 and $9,000.

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
John Isige
1154 Articles
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige

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