Bought the Dip? Bitcoin Price Rebounds Strongly

Bitcoin (BTC) price made a small correction yesterday as it dropped from $10,100 towards $9,800. However, today’s bullish momentum returned and the price bounced back above $10,000 to make a new 2020 high at $10,370.

So is the continuation of bullish momentum likely? Let’s look at the charts to see what could occur next.

Crypto market daily performance. Source: Coin360

Bitcoin finds support at $9,800 and continues upwards

BTC USDT 12-hour chart. Source: TradingView

Many Bitcoin traders were waiting for the price to drop to the support at $9,500 but this was not to be. Instead of dropping further, the price stabilized at the $9,750 level and continued its upward momentum.

Does this mean that continuation is likely? The current price action still looks slightly and Bitcoin didn’t break above the next massive resistance.

Nevertheless, it’s a great sign that the $9,500 level was cleared as that was a significant resistance for upwards continuation. However, the next hurdle is the $10,400 area where Bitcoin currently finds resistance.

Through that, a range is defined, which is found in the following chart.

BTC USDT 12-hour chart. Source: TradingView

The range is defined by the resistance at $10,400 and the possible lower support zones at $9,500 and $9,800. If the price can’t break the $10,400 area then it will then likely pull back to retest this area.

Such a test would also mean that the price is going to consolidate for a while. Consolidation at this level would imply re-accumulation before the continuation of the upward trend.

If the price of Bitcoin can break through $10,400, the next resistances are found at $10,900 and $11,600-11,900 where there is also an open CME gap.

Total market capitalization shows strength

The total market capitalization still provides a brighter view than the Bitcoin chart alone.

Total market capitalization cryptocurrency 12-hour chart. Source: TradingView

The chart is showing a clear support/resistance flip at $245 billion, after which the market capitalization continued to rally upwards. The next target area is found at $285 billion and $300 billion.

A retest of $260 billion was likely to occur, but the market didn’t give such a retest as $275 billion became support.

This gives the impression that…

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