Bitcoin (BTC) hasn’t been doing well in recent days. After forming a local Higher at $10,300 in the middle of this week, the price of the world’s first crypto has been falling quite steadily.
The Digital Asset plunged from $10,300 to as high as $9,250 – which is just over 10% – in a few hours, liquidating $100 million worth of Long and Short positions on BitMEX in the process, catching traders in a short scramble to respond to the crash signal. price.
Despite the fact that this move was extremely bearish, after falling below $9,300, Bitcoin was able to bounce back, holding above $9,500 for a number of short-term candle closes and for the Daily candle close.
The fact that Bitcoin is currently holding above $9,500, it will be a sign that the bulls are still in control if they can hold onto the weekly close.
TradingView analyst CryptoBullet, in an analysis published last Thursday, explained the importance of the $9,500 level. He refers to that level as “Primary Support.” As for why this is the case, he points to several factors:
- The region around $9,500 has been a “strong” horizontal level for Bitcoin which often acts as a reversal point for both Bears and Bulls depending on which side price tries to approach this level.
- This level is the 0.5 Fibonacci Retracement level on the decline from $14,000 to $6,400. The 0.5 Fibonacci level is often significant in the market.
- $9,500 is high volume nodes per VPVR.
- The EMA200 indicator on the four-hour chart is currently around $9,500, just below the current BTC price. What is important, this level is a moving target because it is an MA (Moving Average).
The importance of $9,500 has been echoed by a dealer George mentioned. Previously, he said, “Simply put, $11,700 is next. Validation [if any] net break below $9,500.
George’s comments are almost identical to Filb Filb, the pseudonymous analyst saying that “every time Bitcoin turns $9,500 to Support [every week], it’s going to be $11,500.”
The question remains: can Bitcoin hold above $9,500 and keep its short to medium term uptrend intact? According to a number of technical signals, it is possible.
Earlier this week, Bitcoin formed a Golden Cross, with the MA50 crossing the MA200 day.
When this signal was last formed in April 2019, the price was down 11% in the two days after the Cross formed. Bitcoin, in the two days following the recent Golden Cross has also fallen by 11%.
Repeating history itself will see BTC continue its trend higher in the coming days without falling any further. Hopefully so!
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Author: Syofri Ardiyanto
Crypto Enthusiast and Investor