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Bitcoin Highly Bullish Despite Selloff; Here’s What Could Propel it to $11,000

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Bitcoin corrected lower sharply from the $10,500 resistance against the US Dollar. However, BTC is still above the key $9,800 support and it could soon rally again. After trading to a new 2020 high, bitcoin price corrected lower from $10,507 against the US Dollar. The price declined below the $10,200 and $10,000 support levels. There is a key bullish trend line forming with support near $9,800 on the 4-hours chart of the BTC/USD pair (data feed from Kraken). The pair is well supported above $9,800 and the 100 simple moving average (4-hours). Bitcoin Could Rally Again This past week, bitcoin maintained a bullish bias above the $10,300 area against the US Dollar. BTC price extended its rally towards the $10,500 level and settled above the 100 simple moving average (4-hours). Finally, the price traded to a new 2020 high at $10,507 before starting a downside correction. It seems like the price made a couple of attempts to gain pace above $10,500, but the bulls failed. As a result, there was a bearish reaction below the $10,400 and $10,300 levels. Besides, the price declined below the $10,200 support area. More importantly, there was a spike below the $10,000 support area. However, bitcoin found a strong support near $9,800 (the last breakout zone) along with the 100 simple moving average (4-hours). A swing low is formed near $9,764 and the price is currently rising. Additionally, there is a key bullish trend line forming with support near $9,800 on the 4-hours chart of the BTC/USD pair. It is now trading above the 23.6% Fib retracement level of the recent correction from the $10,507 high to $9,764 low. Bitcoin Price On the upside, an initial hurdle for the bulls is near the $10,140 level. It coincides with the 50% Fib retracement level of the recent correction from the $10,507 high to $9,764 low. Therefore, a clear break above the $10,140 and $10,200 levels could open the doors for a larger upward move in the coming sessions. In the mentioned case, the bulls may perhaps eye a break above $10,500 and a test of the $11,000 area. More Downsides? On the downside, the $9,800 support and the 100 simple moving average (4-hours) hold the key. If there is a daily close below the $9,800 support, bitcoin price may even struggle to stay above the $9,500 support. In the mentioned bearish case, the price is likely to extend its downside correction towards the $9,000 support area. Technical indicators 4 hours MACD – The MACD for BTC/USD is losing pace in the bearish zone. 4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is just above the 40 level. Major Support Level – $9,800 Major Resistance Level – $10,200

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via https://www.ohnocrypto.com

Aayush Jindal, Khareem Sudlow