Why Bitcoin Consolidation Will Culminate In A Massive Surge Past $9,500?

BTC/USD price chart

  • Bitcoin reinforces the support at $9,200 after correction from recent highs at $9,433.
  • Bitcoin price consolidates and settles above $9,300 as bulls focus on key levels at $9,400 and $9,500.

Bitcoin is still in a bullish phase despite the correction from the recent high of $9,433. Tom Lee, the co-founder and Managing Partner of Fundstrat, an independent research boutique also believes that Bitcoin is a “re-entering the bull market.” Lee predicts that “2020 should be great for Bitcoin’ especially with the May 2020 halving event which will lead to a good supply change in the market.

Bitcoin Price Analysis

Following the retreat from the new January peak, Bitcoin dipped towards the support at $9,200. Luckily, the huge concentration of buyers in this zone forced a reversal above $9,300. Bitcoin price currently lacks enough momentum for force the price toward the resistance at $9,400. However, there is just enough buying power to keep the bears at bay and allow for consolidation above $9,300.

BTC/USD daily chart

BTC/USD price chart
BTC/USD price chart by Tradingview

Bitcoin is exchanging hands at $9,323 after growing 0.68% on the day. Most technical indicators clearly show that bullish and bearish pressure of equal strength. This means that the current sideways action is likely to continue in the short term.

The Relative Strength Index (RSI) confirms the above analysis with its ranging trend slight under 70. Looking at the Moving Average Convergence Divergence (MACD), I can tell that that bulls have a lot more control over the next direction Bitcoin will take. The bullish cross at +325 is a key is a clear reflection of the building momentum above $9,300. A break above $9,400 will pave the way for gains past $9,500 in readiness for an assault at $10,000.

Bitcoin Key Levels

Spot rate: $9,356

Relative change: +67

Percentage change: 0.68%

Support: $9,200

Resistance: $9,400

Trend: Sideways inclined

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