Over the weekend, bitcoin failed to break above the $10,200 region, where the October 2019 highs lie. Since then, the first cryptocurrency retreated to the $9,700 area. The rejection from highs made some investors doubt in further extension of the recent rally. For some, however, it looks like a buying opportunity. The question is if the BTCUSD pair manages to hold gains and resume the ascent from the current levels, or we will see further retreat before the uptrend continues.
So, the bulls failed to confirm a break above the $10,000 psychological level, and now, bitcoin sees the second day of a bearish correction. Still, the uptrend remains intact at this stage, at least as long as the prices remain above the $9,000 handle. The immediate major support for the digital currency is seen at $9,600. Once below, the retreat could be extended towards $9,500 and then probably to $9,200.
According to the technical indicators, the bunce from multi-month highs may continue in the near term. Moreover, BTCUSD could even get back below the $9,000 psychological level for the first time since late-January. In this scenario, the leading cryptocurrency by market capitalization will encounter the next support in the form of the 200-daily moving average around $8,800.
In a wider picture, bitcoin will likely resume the rally and exceed the $10,000 handle. The medium term target still comes at $11,000. In the weekly timeframes, the picture looks positive since the start of 2020. The important target comes around $10,500. In the immediate term, the pair needs to hold above the $9,700 region in order to retarget the $10,000 swing high once again. A daily close below the intermediate support will deteriorate the short-term technical picture for bitcoin.
The current dynamics in BTC continues to confirm its status as a safe-haven asset as risk sentiment has been improving gradually since the start of the week, as investors hope that Chinese authorities will take additional measures to shield the domestic economy from the spreading coronavirus.