Bitcoin extends sideways grind below $9,500, looks to end week around 9% higher
|- Bitcoin rose nearly 30% in January to start 2020 on a strong note.
- $9,500 - $9,600 area aligns as next critical resistance ahead of $10,000.
Bitcoin closed the day virtually unchanged a little below $9,400 on Saturday as investors seem to be staying on the sidelines while waiting for the next significant catalyst. As of writing, the pair is trading at $9,340, erasing 0.4% on a daily basis. For the week, the pair is up 9% after closing the first month of 2020 with an impressive gain of 30%.
Technical outlook
On the daily chart, the RSI indicator continues to move sideways a little below the 70 mark. In the meantime, the 200-day SMA is about to make a bullish cross with the 20-day SMA to confirm the bullish outlook. However, the pair's correction stays relatively shallow since it touched its highest level since late October at $9,568 last Thursday and it could have a difficult time clearing the next significant hurdle in the near-term.
$9,500 - $9,600 area (static resistance, Fibonacci %78.6 retracement of the Oct. 25 - Dec. 18 drop) aligns as the initial resistance ahead of $10,000 (psychological level) and $10.400 (Oct. 26 high). On the downside, supports could be seen at $9,000 - $8,900 (Fibonacci %78.6 retracement of the Oct. 25 - Dec. 18 drop, 200-day SMA) and $8,500 (Fibonacci %50 retracement of the Oct. 25 - Dec. 18 drop).
BTC/USD daily chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.