Trading Bitcoin: Will $9.2k Support Hold?

Will $9.2k Support Hold?

For the past two weeks, the 200MA (orange) has been acting as strong support for the bulls throughout our recent uptrend. If price closes below the 200MA, then the bears will likely regain momentum of the trend. In order for price action to remain bullish, Bitcoin must continue to close above the 200MA.

4 Hour

On the 4 hour chart above, Bitcoin has closed below the 50MA (grey). This level was serving as a support level for the bulls. Now that this support level has been broken, it may be foreshadowing a decline below the 200MA on the daily chart. Additionally, the Lucid SAR (blue x) is acting as bearish resistance above price.

Conclusion

As consolidation continues, the bulls are desperately looking for momentum. The key metric to pay attention to is the 200MA (orange) on the daily chart. If Bitcoin closes below this support level, the bears will likely retest support at $8.7k. If Bitcoin continues to close above the daily 200MA (orange), look for a bullish retest of the $10k psychological support level. As of now, the trend remains completely neutral.

Disclaimer: The author of the article hodls Bitcoin.