Bitcoin (BTC) Price Prediction – February 20
The Bitcoin price declined heavily below $9,800 and it is now vulnerable for a bigger correction.
BTC/USD Long-term Trend: Bullish (Daily Chart)
Resistance Levels: $10,700, $10,900, $11,100
Support Levels: $8,700, $8,500, $8,300
BTC/USD saw a sudden sell over the past 2 days as it dropped from a high of $10,319 to as low as $9,281. Though the coin is attempting to bounce back, the recent drop has pushed the momentum within the bearish favor and this could be the start of a further retracement lower.
Taking a look at the daily chart above, we can see that Bitcoin rolled over from the $10,319 resistance level as it started its descent lower. It initially dropped beneath the 9-day moving average at $10,000 but managed to find support below the 21-day moving average at $9,600 which allowed it to bounce back higher.
However, if the sellers continue to drag BTC/USD back beneath the support at $9,656, the first level of lower support is located at $9,300. Beneath this, the critical support lies at $8,700, $8,500 and $8,300. On the other hand, if the bulls bounce higher, the nearest resistance lies at $10,700, $10,900 and $11,100 levels.
Meanwhile, the RSI (14) is moving around the 50-level which shows that the market may likely follow a sideways movement. For a market recovery, traders will need to see the RSI (14) breaking back above the 50-level and upwards.
BTC/USD Medium – Term Trend: Ranging (4H Chart)
Since the beginning of today, BTC/USD has been trading within the range of $9,709 to $9,392 been revealed by the technical indicator RSI (14). Nevertheless, the coin has not yet slipped below $9,000 but still in the loop of making a bounce back. The Bitcoin price hovers around $9,644 and may take time to persistently trade above $9,800. The upward movement is facing hurdles near the $10,000 and $10,200 resistance level.
However, on the downside, immediate support is near the $9,500 level while the main support is at the $9,400 level. The price might slide sharply below $9,300 which may likely test the main support at $9,200 level and below. Technically, BTC/USD is poised for more losses in the near-term as the red-line of 9-day MA has crossed below the green-line of 21-day MA, indicating more bearish movement.
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