Bitcoin's bullish trend is intact as long as it stays above $8,800
|- Bitcoin looks bearish in the short run with the local support around $9,600.
- The longer-term perspective remains bullish as long as the price stays above $8,800.
Bitcoin (BTC) is changing hands at $9,780, mostly unchanged in recent 24 hours. The first digital asset has been range-bound with bearish bias after the retreat below $10,000 on Monday. Currently, Bitcoin's market capitalization is registered at $178.1 billion, which is 63.3% of the total market of digital assets.
Currently, over 82% of all Bitcoin addresses are in the green zone, which means that an overwhelming majority of holders are making money. While this positive long-term signal implies that Bitcoin is poised for further growth, the short-term technical setup looks bearish.
The short-term picture is bearish
Thus, on the intraday charts, BTC/USD broke below SMA100 1-hour at $9,890. Now this area serves as an initial resistance that separates BTC from a stronger barrier of $10,000. Bitcoin will need to see a sustainable move above this area to claim that the correction is over.
However, considering that 1-hour RSI stays flat in a neutral position, we may suggest that BTC/USD will continue moving in the current range with strong support on approach to $9,600. This area served as a formidable resistance during the previous week; now, it is reinforced by SMA200 1-hour located on approach. BTC bears will have a hard time trying to clear this barrier. Once they succeed, the sell-off will gain traction with the next focus on $9,300. This support is created by 38.2 Fibo retracement for the downside move from July 2019 high to December 2019 low.
BTC/USD 1-hour chart
The longer-term view remains positive
This view is shared by a popular crypto Twitter analyst Parabolic Thies, who believes that BTC bears would find support at $9,600-$9,400. However, the expert believes that the bullish trend stays intact as long as BTC trades above $8,800.
$BTC dropping from $10.2k - $9.8k as of now. This is expected. No need to start worrying unless support at $8.8k is breached.
On the daily chart, $8,800 is reinforced by SMA200 daily. BTC/USD has been trading above this area since January 27. Also, a golden cross created by SMA50 and SMA100 daily implies more growth for BTC.
BTC/USD daily chart
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