Bitcoin’s (BTC) Price Must Hold $9,500 as Support, or Else…


Bitcoin hasn’t fared too well over the past day and a bit. After finding a local top at $10,300 on Wednesday morning, the price of the leading cryptocurrency fell off a cliff. Effectively literally.

As covered by NewsBTC, the asset tanked from $10,300 to as low as $9,250 — a drop of just over 10% — in a few hours’ time, liquidating over $100 million worth of long and short positions on BitMEX in the process, catching traders with their pants down.

Despite the fact that this move was extremely bearish, there was a silver lining: after plunging under $9,300, the cryptocurrency managed to bounce back, holding above $9,500 on a number of short-term closes and for the daily candle close.

Related Reading: Trader Who Nailed Bitcoin’s $3,000 Bottom Fears More Downside is Near

The fact that Bitcoin is currently holding $9,500 (just look at the chart below from “Exitscammed,” analysts say, adds to the bull case for the cryptocurrency moving forward.

The Importance of Bitcoin Holding $9,500

TradingView analyst CryptoBullet, in an analysis published Thursday, explained the importance of $9,500, calling the level “major support.” As to why this is the case, the analyst pointed to a confluence of factors:

  • The region around $9,500 has been a long-time “strong” horizontal level for Bitcoin, often acting as a reversal point for bears when approached from above and a reversal for bulls when approached from below.
  • This level is the 0.5 Fibonacci Retracement level of the drop from $14,000 to $6,400. The 0.5 Fibonacci level is often significant in markets.
  • $9,500 is a high-volume node per the VPVR.
  • The 200 exponential moving average on the four-hour chart is currently sitting around $9,500, just below the current price of the cryptocurrency. Importantly, this level is a moving target as it is a moving average.

The importance of $9,500 has been echoed by a trader going by George. Per previous reports from this outlet, he said  “Keep it simple, $11,700 is next. Invalidation [if there is a] clean break below $9,500.”

George’s comment came hot on the heels of a similar one from Filb Filb, the pseudonymous analyst remarked that “every time Bitcoin turns $9,500 to support [on a weekly basis], it goes to $11,500.”

Can BTC Hold This Price?

The question remains: can Bitcoin hold $9,500 and keep the short-term to medium-term uptrend intact? According to a number of technical signals, it’s possible.

Early this week, Bitcoin formed a golden cross, with the 50-day moving average crossing over the 200-day moving average.

When this signal last formed in April 2019, the price dropped 11% in the two days after the event. Bitcoin, in the two days following the recent golden cross, has dropped by 11%.

History repeating itself will see BTC continue its trend higher in the coming days by not falling further.

Featured Image from Shutterstock

Source link


Please enter your comment!
Please enter your name here