Will Bitcoin Surge Towards $10,000 or Head Back to $8000?
Bitcoin's start of 2020 seems much brighter than that of 2019. Bitcoin started the new year by trading at $7189 and despite a minor 24 hour crash below $7000 on the 3rd of January, it seems that the market is optimistic. Earlier today Bitcoin climbed above $9000 for the second time this month. It previously reached highs of $9100 on January 19th but the price was suppressed down to $8329 on January 24th.
Unlike the previous rally, this time Bitcoin's climb to $9000 seems healthier and more gradual. Despite this, there is uncertainty in the market on whether Bitcoin can maintain its price. Currently the Bitcoin market sentiment analyzer known as the Fear & Greed index shows the needle stuck halfway. It seems that the market is undecided on which way Bitcoin will head in the short term.
As such we should analyze the charts to see if Bitcoin can maintain its price and grow.
Bitcoin Weekly Review
Bitcoin is just following our previous forecast and trying to find support on 200EMA on 1D chart. If it will happen BTC will go to the next resistance level which is $10,200. Volatility just went again above volume dynamics which is a serious confirmation for a long on Bitcoin. All indicators on weekly chart are extremely bullish and will bring us to next Volume profile level of resistance which is also $10,200.
Next short Fibonacci stop is $9377 on 1D chart. Just wait for MACD to confirm green crossover on 1D chart before any action. Collective RSI on weekly chart is also waiting for confirmation so make sure you trade with care.
Stop loss for now is 8010USD which is going to be under 50EMA and it will confirm bearish reversal.
* A special thanks to Senin for his technical analysis expertise
Written by Jonathan Ganor
Writer & cryptocurrency aficionado