Why Bitcoin Pullback Is Necessary The For Rally Eyeing $11,000?
- Bitcoin revives the uptrend teasing further action towards $11,000.
- Price pullbacks become a part of Bitcoin’s recovery tactic in 2020.
Bitcoin is majestically trading above the critical $10,000 level following what has come to be known as a successful weekend session. A slight dip on Friday saw Bitcoin test $9,700 support. However, a reversal from the support had eyes on $10,000. The price action exceeded the crypto community’s expectations when Bitcoin not only climbed above $10,000 but also formed new 2020 highs at $10,195.
The trading action in the past few weeks has been such a way that Bitcoin rises to a new yearly high, pulls back down and breakouts forming another high. The trend is also opening the eyes of the traders who now prefer to buy during the pullbacks.
At the moment, Bitcoin is trading at $10,061 (on Coinbase). The price is in a bullish phase and short term to medium term analysis shows that the bulls could remain relatively in control. However, we cannot rule out price pullbacks.
In this case, since Bitcoin approached $10,200 and failed to breakthrough, the region became a stronger resistance zone. Gains above $10,100 have recently become unsustainable. On the brighter side, Bitcoin has in the last 24 hours managed to stay above the key $10,000. As per the RSI, the ongoing retreat could test the support at $10,000. If Bitcoin drops further, the next support is at $9,750.
As far as bullish signals are concerned, Bitcoin price is trading about the Ichimoku Cloud whose moving averages and trendlines are moving north. As long this situation remains intact, Bitcoin could remain in the hands of the bulls in spite of short term setbacks (price pullbacks).
Bitcoin Levels To Watch
Spot rate: $10,061
Relative change: -97
Trend: Bearish
RSI: Retreat from the overbought signals growing bearish grip
Support: $10,000 and $9,750
Resistance: $10,200, $10,400 and $11,000
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