- Summary:
- Bitcoin price continues the correction from yearly highs for the third consecutive trading session. BTCUSD started a correction from the 2020 rally
Bitcoin price continues the correction from yearly highs for the third consecutive trading session. BTCUSD started a correction from the 2020 rally that drove the price up to $10500. As we have discussed in our Friday analysis article it is crucial for the number one cryptocurrency to hold the $10000 mark. That is not the case as on Saturday the crypto pair broke below the $10000 support and more sellers quickly jumped in.
The People’s Bank of China has filed over 80 patents relating to its plans to launch a digital currency. The patents show the PBOC plans which include integrating digital currency wallets into existing retail bank accounts. patents “outline mechanisms to allow customers to make deposits with their existing banks and then exchange that for digital currency. Some of the licenses are focused on digital currency chip cards or digital wallets that retail consumers could use, and be linked directly to their bank accounts.
Read our Best Trading Ideas for 2020.
Bitcoin Price Technical Outlook
Bitcoin is 1.42% lower today at $9769 as bulls lost momentum after the rejection at $10500 mark and the break below the $10000. On Saturday bitcoin found support at the ascending trendline which started in early January.
On the downside, first support will be met at $9716 the daily low. If BTCUSD price breaks below the daily low, the next support stands at $9618 the low from Saturday’s trading session. Next support level is at $9530 the low from February 6th.
It is very important for the crypto pair to continue inside the ascending channel. Yesterday BTCUSD bounced from the lower band of the trading channel while today is testing again the lower band. In case the bitcoin price breaks below the uptrending channel we might experience negative implications for the price. Longs might have to close their positions.
On the flip side, the immediate hurdle for bitcoin stands at $9973 the daily top. The next resistance stands at $10052 the high from February 16th. The five month-highs at 10500 is the next supply zone.