- Bitcoin (BTC) continues to break below near term support levels
- BTC breaks below $9,800 and it looks poised for further short-term correction
- Bitcoin bulls are still in charge provided Bitcoin remains over the $9,200 mark
Bitcoin News Today – Bitcoin (BTC) recently tested a new 2020 high close to the $10,200 mark before declining against the U.S. dollar. BTC is currently in the red and it might continue to head south, but the bulls are likely to show up around the $9,500 area.
Will Bitcoin Continue Its Downtrend to $9,500 in the Near Term?
Recently, the price of Bitcoin broke over the $10k level against the USD. Nevertheless, the digital currency failed to clear the $10,200 hurdle point and it formed a new year-to-date high close to $10,201. The digital currency started a downward correction below the $10k level and the 100 hourly simple moving average.
Bitcoin (BTC) Price Today – BTC / USD
Besides, the bears succeeded in pushing the price of the digital currency below the 50 percent Fibonacci retracement level of the previous swing from the low of $9,659 to the high of $10,201. The recent downtrend was such that even BTC traded below the $9,850 support mark. At the outset, there is a formation of a key declining channel with a hurdle close to the $9,785 mark on the hourly chart of Bitcoin against the USD.
More importantly, the digital currency is currently trading below the 76.4 percent Fibonacci retracement level of the previous swing from the low of $9,659 to the high of $10,201. Hence, chances are the digital currency might plunge below the $9,659 swing low in the short-term.
Bitcoin Continues to Test Short-Term Support Levels
Since Bitcoin (BTC) broke below the $10k support level, it has tested several near term support levels. The next major support of the digital currency is close to the $9,530 and $9,500 marks. Furthermore, the 1.236 Fibonacci retracement level of the recent swing from the low of $9,659 to the high of $10,201 is close to the $9,530 mark.
If the digital currency breaks below that level, chances are it might start a larger bearish move. If that happens, Bitcoin (BTC) might plunge towards the $9,200 support level in the short-term.
Are Bitcoin Bulls Still in Charge?
The recent plunge in the price of Bitcoin (BTC) could be seen as part of a downtrend from the swing high of $10,201. The $9,500 mark could play a key role in the short-term. It is only when the price of the digital currency plunges below $9,200 and $9k that the bulls need to start worrying for a trend change to bearish.
At press time, the major support of the digital currency is close to $9,650 followed by $9,530. On the upside, the major hurdle points are $9,850, $10,000 and $10,200.