Bitcoin Price Analysis: Must BTC/USD Revisit $9,200 For Fresh Demand?

Bitcoin
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Bitcoin Price Analysis: Must BTC/USD Revisit $9,200 For Fresh Demand?

  • The high congestion of sellers at $9,800 has thwarted advances by the buyers after BTC/USD dropped to $9,600.
  • Bitcoin’s shallow recovery is characterized by weak fundamentals such as low volume and low volatility levels.

Bitcoin is lethargic in its recovery following another dump to $9,600. Similarly, the general trend on the market is just as drab. Ethereum can barely hold above the support at $200 while Ripple has been unable to stay above $0.27.

The largest crypto in the cryptocurrency market is bullish especially after reclaiming the position above $9,700. However, correction towards $9,800 is hampered by the high concentration of sellers at $9,776 (intraday high).

BTC/USD 4-hour chart

BTC/USD price chart
BTC/USD price chart by Tradingview

Also limiting movement is the three-months-long trendline resistance and the moving averages (both the 50 MA at $10,041 and the 100 MA $10,171). The double-cross of the 50 SMA under the 100 SMA around $10,265 meant that a lower consolidation was going to happen one way or the other.

Technical indicators are still strongly negative painting a picture of a downside action that is not yet over. For instance, the moving average convergence divergence failed to cross above the zero line following the recovery from the first drop to $9,600 (last week low). This left a gap that was later explored by the bears sending Bitcoin on another flash drop journey to $9,800 on Monday. The MACD’s visible divergence is negative signaling a stronger bearish momentum in the near-term.

In addition to that, Bitcoin is dealing with lower volumes as well as lower volatility levels. This means that recovery towards $10,000 without stronger fundamentals will lead to a subsequent drop in price. The most likely movement for Bitcoin is to refresh the buy zone at $9,200. This will create fresh demand thrusting Bitcoin above $10,000 and probably the next target at $10,400.

Bitcoin Key Technical Levels

Spot rate: $9,710

Relative Change: +21

Open: $9,688

Low: $9,599.85

High: $9,776

Trend: Short-term bullish

Volatility: Expanding

Volume: Low

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Bitcoin Price Analysis: Must BTC/USD Revisit $9,200 For Fresh Demand?
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Bitcoin Price Analysis: Must BTC/USD Revisit $9,200 For Fresh Demand?
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The high congestion of sellers at $9,800 has thwarted advances by the buyers after BTC/USD dropped to $9,600. Bitcoin’s shallow recovery is characterized by weak fundamentals such as low volume and low volatility levels.
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Author: John Isige

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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John Isige 281 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

Follow John @