Bitcoin Price Analysis: Why BTC/USD $10,000 support is key?

Bitcoin price consolidation above $10,000 is key for the next leg towards $11,000.
Bitcoin’s sideways action is likely to take center stage in Monday’s trading sessions.

Bitcoin had a very rewarding weekend as it jumped above the $10,000 milestone. The bull rally extended toward $10,200 but formed a high at $10,195 (new 2020 high). The approach to the ‘moon’ appears to have hit a snag as the price reversed towards $10,000. However, BTC seems to have found balance above the $10,000 support and is now trading at $10,107. Bulls are working hard to push BTC back into the green thereby correcting the subtle 0.7% loss on the day.

Weiss Crypto Ratings grades Bitcoin an “A”

Weiss Ratings is known worldwide as the only financial rating platform. The crypto division of the firm, Weiss Crypto Ratings recently upgraded the overall rating for Bitcoin to an “A” or otherwise referred to as excellent. Bitcoin was given the upgrade due to the improvement in fundamentals as well as the anticipation the price will grow on approach to the May 2020, halvening event.

#Bitcoin upgrade: The Weiss Crypto Rating for #BTC is now A- (excellent), thanks to improving fundamentals and positive price action ahead of Bitcoin's next halving.https://t.co/vyb8wxympt
— Weiss Crypto Ratings (@WeissCrypto) February 7, 2020

Bitcoin price technical picture

Bitcoin is in the hands of the bulls in spite of the failure to break above $10,200. The RSI’s sideways movement above 70 suggests that action will be limited to the upside. However, downward movements are also unlikely. Therefore, consolidation is the most probable in the near term. Apart from the support at $10,000, other key areas are $9,750, the 50SMA on the 4-hour chart, the 100 SMA, the main trendline (black continuous) and $9,000. The consolidation above $10,000 is key for the run-up to $10,000.

BTC/USD 1-hour chart

Share: Cryptos feed

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.