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

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