Bitcoin News Today – Headlines for January 31

Reddit co-founder praises Bitcoin, says it's a store of value against hyperinflation; to fuel new internet
  • Bitcoin (BTC) hits a new 2020 high at $9,569
  • Bitcoin shows signs of major corrections
  • Bitcoin needs to break over the $9,500 again for a rally towards the $10k level

Bitcoin News Today – Bitcoin (BTC) recently broke over the $9,400 and $9,500 mark against the U.S. dollar. The digital currency surged to a new 2020 high at $9,569 before it started correcting lower. However, Bitcoin (BTC) is still over a major support level and it is likely to continue to its uptrend in the near term.

Bitcoin Shows Signs of Major Corrections

Yesterday, the world’s largest digital currency by market cap remained well over the $9,200 support mark. As a result, the bulls were able to push the price of the digital currency over the $9,400 hurdle point. The digital currency even broke over the $9,500 hurdle point and formed a new yearly high at $9,569. Nevertheless, the bulls failed to hold gains over the $9,500 mark.

Bitcoin later plunged below the $9,500 mark and the 23.3 percent Fibonacci retracement level of the previous swing from the low of $9,167 to the high of $9,569. More importantly, the crucial bullish trendline of this week was breached with support close to the $9,420 mark on the one-hour chart of BTC against the USD.

Bitcoin (BTC) Price Today – BTC / USD

#NamePrice24H %
1
bitcoin
Bitcoin(BTC)
$6,111.05
-0.38%

Hence, it seems like the price of the digital currency is preparing a downward correction below the $9,400 mark. The immediate support of the coin is close to the $9,360 mark. That support level coincides with the 50 percent Fibonacci retracement level of the previous swing from the low of $9,167 to the high of $9,569.

The first major support is close to the $9,260 mark. If Bitcoin (BTC) breaks below that level, the $9,150 mark might prevent further losses. However, it is crucial for Bitcoin (BTC) to remain over the $9,150 support level. If it breaks below that level, chances are BTC might start a huge downward correction below the $9k level.

Can Bitcoin Bulls Prevent Heavy Downtrend?

The recent plunge below the trendline and the $9,400 support level could be false. For Bitcoin (BTC) continue its uptrend, the bulls need to push prices over the $9,480 and $9,500 marks. If the digital currency successfully breaks over the $9,500 mark, it is more likely to pave the way for more gains towards the $10k mark. However, it needs to break over the resistance that is close to the $9,850 mark.

Hence, the major resistance levels of the coin on the upside are $9,500, $9,850, and $10,000. Whereas, the major support levels are $9,260 followed by $9,150. The Relative Strength Index of BTC/USD is presently declining and it is now below the 50 level. On the other side, the MACD is now back into the bearish territory.

Princess Ogono is a writer, lawyer and fitness enthusiast. She believes cryptocurrencies are the future. When she's not writing, she spends time with her adorable cat, Ginger and works out often.

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