Bitcoin – BTCUSD Price Retreat on Profit-Taking

Bitcoin – BTCUSD price retreat today after the strong rally yesterday. BTCUSD hit fresh two-month highs in early trading while some profit-taking pushed the price lower. It was an excellent trading session for cryptocurrencies yesterday. Cryptos made their most significant intraday move since the beginning of 2019. Total capitalization for cryptocurrencies added almost 40 billion since the beginning of 2020. Crypto traders hope for widespread adoption of crypto assets as the main factor fueling the recent rally.

BTCUSD is 2.11% lower at 8,623 with capitalization now at 157,97, the capitalization of the 100 largest cryptocurrencies has increased to 239.11. Bitcoin was one of the best-performing assets in 2019, while it is higher 22% in January 2020.

Read our Best Trading Ideas for 2020.

Bitcoin – BTCUSD Bulls Targeting $9,000

Bitcoin retreat from two-month highs today after yesterday run an impressive rally from 8,080 up to 8,800 mark. The momentum is positive for bitcoin despite today’s pullback.  We had discussed yesterday that a move above 8,500 would provide a buy signal, and when that happened more bids joined the action pushing the crypto pair up to two-month highs.

On the downside, first support for BTCUSD will be met at $8,555 the daily low. If bitcoin breaks below bears might try to reach the next support at $7,950 the 100-day moving average. If BTCUSD pierces the 100-day moving average then the bulls will be on the defence.

The correction helped bitcoin to exit the overbought area. Initial resistance for BTCUSD stands at $8,910 the daily top. Next resistance will be met at the $9,000 psychological mark which guards the 200-day moving average at $9,083. A break above that resistance might be the beginning of another leg higher.

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