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28 Feb 2020
2 min read

BTC/USD In Consolidation Above $9K

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Written by OspreyFX News Team

*OspreyFX would like to state that traders should research extensively before following any information given hereby. Please read our Risk Disclosure for more information.

BTC/USD In Consolidation

  • BTC/USD remains above $9,600
  • Will it reach $11,000?

The cryptocurrency managed to retrace its Friday’s highs and is testing the 200 SMA at the 4H chart, where support lies. The rangebound has been established. However, a bullish channel is underway and guiding the path to contain further declines. No major news occurred in the crypto sphere, but fears related to coronavirus are catching the attention of traders across the globe. Also, the risk-off sentiment has been consolidating its stance across the board, setting the tone for the cryptocurrencies against the USD.

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Bears are dominating the scene in the short term

The surge in the greenback’s demand can be explained in the context of profit-taking in the “king of cryptocurrency”, but it shouldn’t be considered the major catalyst. The whales have also been making some moves.

As for the BTC/USD pair, it seems like a bearish breakout could be on the cards should the 200 SMA give up in favor of the sellers, to allow a fall towards $9,131.13. When it breaks below that area, the doors will open to test the $8,303.70 zone. Such a move could invalidate the bullish channel that has been projected since the lows from 2020, thus validating a strong resistance found at around $10,434.

BTC/USD In Consolidation

$11K on the cards?

To the upside, a rebound could happen to reach the first resistance that lies around $10,147.69 in the first degree. That region has a confluence with critical levels that acted as a strong barrier, which capped further gains in Bitcoin. However, if bulls manage to break above that area, the focus will shift towards the $11,000 handle. Technical oscillators are showing negative readings. The RSI is still below the 50 level, favoring further consolidations in the cryptocurrency. However, momentum is still showing a slightly neutral stance overall.

 

*OspreyFX would like to state that traders should research extensively before following any information given hereby. Please read our Risk Disclosure for more information.