Bitcoin (BTC) Price Analysis: Was $10,000 Mark a Local Peak Before Retesting $8,500?

Price Predictions
Sat, 05/09/2020 - 15:15
Denys Serhiichuk
Is Bitcoin (BTC) making a comeback to $10,000, or is it getting ready to drop to $8,500?
Cover image via www.tradingview.com

The market is facing a slight correction after a period of sharp growth. However, the decline is more applicable to Bitcoin (BTC) than to the altcoins as most of the top 10 cryptocurrencies are trading in the green.

Top 10 coins by Coinstats

The rise of altcoins have affected Bitcoin's market share influence, which has decreased over the last 24 hours. The current dominance rate for the main cryptocurrency currently sits at 67%.

BTC’s dominance rate

Below is the relevant data for Bitcoin (BTC) and how it is looking today:

  • Name: Bitcoin

  • Ticker: BTC

  • Market Cap: $177,920,483,639

  • Price: $9,685.17

  • Volume (24H): $48,310,844,220

  • Change (24H): -1.87%

BTC/USD: Expected Correction Before Breaking $10,000

The passing week has been a positive note for Bitcoin (BTC). The flagship crypto has gained 8.60% to its value, while Ethereum (ETH) and XRP have lost around 1%.

BTC/USD chart by TradingView

Looking at the 4H chart, Bitcoin has corrected itself to its support zone at $8,500. However, one would consider it as a correction before continued growth. 

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Such a statement is confirmed by the bullish divergence on the Relative Strength Index (RSI). There is also high liquidity concentrated around the $10,000 zone. In this case, the next resistance area where Bitcoin (BTC) might obtain this is around the  $10,400 mark.

BTC/USD chart by TradingView

Looking at the bigger time frame, the next resistance level is located around the $11,200 mark. The Bollinger Bands are moving there, suggesting growth before an expected dump. From a technical standpoint, there is little chance that Bitcoin (BTC) will fix above $11,200 as the RSI is already in the overbought zone. There is also no accumulation phase for the current price rise.

At press time, Bitcoin was trading at $9,643.

 

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About the author

With more than 5 years of trading, Denys has a deep knowledge of both technical and fundamental market analysis. Mainly, he has started his blog on TradingView where publishes all relevant information and makes predictions about top coins.
Thus, his experience is backed up by working in top blockchain related companies such as W12, Platinum Listing & ICO Advisory, ATB Coin, and others, can be contacted at denys.serhiichuk@u.today.

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