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Bitcoin Just Plunged From $10k, But This Data Shows Bulls Are Still in Control

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Bitcoin climbed higher nicely above $9,800, but it failed near $10,000 against the US Dollar. BTC price is currently declining, but it is likely to find support near $9,640 and $9,500. Bitcoin price failed again to gain strength above the $10,000 resistance area against the US Dollar. It is down more than $250, but there are still many supports on the downside near $9,650. There is a major bullish trend line forming with support near $9,750 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair could dip a few points, but it is likely to bounce back from $9,650 or $9,500. Bitcoin Remains Supported In the past few sessions, there was a steady increase in bitcoin price above the $9,650 and $9,800 levels against the US Dollar. BTC even traded above the $9,880 resistance and settled above the 100 hourly simple moving average. Finally, the price tested the $10,000 resistance area, where the bears emerged. The bulls made two attempts to push the price above $10,020, but they failed. As a result, there was a sharp bearish reaction below the $9,880 and $9,800 levels. Bitcoin declined more than $250 and it seems like it was rejected near the $10,000 area. The recent decline was such that the price spiked below $9,750 and the 100 hourly simple moving average. However, the decline was protected by the $9,650 support area. The price is back above $9,700 and the 23.6% Fib retracement level of the recent decline from the $10,020 high to $9,599 low. More importantly, there is a major bullish trend line forming with support near $9,750 on the hourly chart of the BTC/USD pair. The pair is now consolidating above the trend line, below which it could revisit the key $9,650 support area. Bitcoin Price The next major support is near the $9,500 level, where the bulls are likely to take a stand. Any further losses may perhaps lead the price back towards the $9,340 support area. Another Increase? As long as bitcoin is trading above $9,500, it could bounce back. An initial hurdle on the upside is near the $9,800 level. It represents the 50% Fib retracement level of the recent decline from the $10,020 high to $9,599 low. If there is a clear break above $9,800, the bulls are likely to make another attempt to clear the $10,000 and $10,020 resistance levels. Technical indicators: Hourly MACD – The MACD is slowly gaining strength in the bearish zone. Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level, with a few bearish signs. Major Support Levels – $9,650 followed by $9,500. Major Resistance Levels – $9,800, $10,000 and $10,020.

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via https://www.ohnocrypto.com

Aayush Jindal, Khareem Sudlow