Bitcoin’s price trend has finally got its investors cheery as the coin has kick-started 2020 with a significant price rise. The coin has managed to trade above $9000 after a long time, however, today, BTC has shown a strong pullback. This has caused the coin to plunge from $9557 to $9316.
After witnessing a steadily bullish month, today, Bitcoin is exhibiting a strong downward correction forming a declining channel. Recently, BTC has tried to strike a bullish break-out from there. It is to be seen where the coin goes from this point as Bitcoin is approaching the 38.20% Fib level while trading against U.S.Dollar.
BTC/USD Price Chart
Over the last 5 days, Bitcoin has drastically changed its price scenario. The coin was way below $9000 when it opened on January 27 but it closed above $9000 on the day. The next day, Bitcoin kept consolidating before it jumped above $9.3k with a hike of 5.12%.
Will BTC Test Support Level at $9200?
It was yesterday when it cleared resistance above $9500 for once and then it saw a pullback. Today, BTC has continued the pullback with an increased bearish impact. Bitcoin needs to remain at least above the 38.20% Fib level to resume the price rally. The 38.20% Fib level corresponds to the $9200 price mark which is supposed to act as a strong support level.
In the chart, RSI is heading downwards the oversold zone while Bollinger bands are squeezed noting a lack of volatility. In a nutshell, Technicals have started to show negative signs due to the current pullback, however, a strong support level and currency like Bitcoin can always alter the scenario!