Bitcoin Shows Heaviest Correction of the Week

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

Bitcoin News
BTC/USD Chart By TradingView

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! To know more about future price changes of BTC coin, visit future predictions for Bitcoin.

Ruti Vora

Ruti regularly contributes in-depth news articles for leading cryptocurrencies. She contributes technical chart-based price updates and analysis pieces on the world's leading digital currencies.

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