Yesterday, the Bitcoin news showed that the most dominant coin has been unable to stay above the psychological barrier of $10,000 with only three days remaining before the miner block rewards are cut in half. The Bitcoin rally stopped at $10,000 but the dip-buyers should be prepared and watch the new BTC price levels.
With only two days left until the block reward halving, Bitcoin (BTC) reached $10,000 for the second time in 24 hours. However, the Bitcoin rally stopped and BTC retraced to the $9,600 region overnight which is the same level where the price of the flagship cryptocurrency remains now.
According to data from TradingView, the BTC/USD pair has many difficulties breaching the $10,000 level and going in the five-figure zone. A few hours ago, we saw the price lose momentum and from a price of $9,980, the Bitcoin rally stopped and BTC retraced to $9,800 and then $9,600.
The dropoff in purchasing volume also broke the pattern of higher lows, causing the most dominnt coin to drop below the pennant seen on the hourly 4-hour time frame. After the major 11.81% rally on Thursday, the Bitcoin rally stopped and traders have been steadily buying each dip.
The price also appears to get some form of support from the high volume VPVR node positioned at $9,925, and on April 8 it similarly bounced right off this node. Despite all of this, there are many signs that Bitcoin is in need of a pullback. On the shorter timeframes, the purchasing volume dropped significantly, the RSI has also come down from 77 to 63 and the momentum on the MACD histogram is decreasing as the MACD pulls below the signal line and the price lingers between $9,600 and $9,900 now.
The big question traders have now is – now that the Bitcoin rally stopped, are we seeing a reversal to $9,300?
The truth is, BTC gained 30% in the cryptonews since April 29. This means that ever since the Black Thursday crash, the price has rallied more than 160%. Thus, a pullback to retest lower support would be perfectly natural – and if not for the upcoming halving, traders who bought the coin at $3,750 and $7,600 would already be itching to take their profits.
In the event of a pullback, traders will need to be careful and wait a couple of days after the halving for the price to stabilize and potentially surge again.
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