Bitcoin Retraces from Daily Highs, But Holds Above Key Support Level

and the aggregated crypto markets incurred an explosive rally yesterday evening that sent BTC’s price skyrocketing from lows of $7,400 to of well over $10,000, which marked one of the largest movements that the cryptocurrency has incurred in the past decade.

Analysts are now noting that Bitcoin has been able to hold above a key despite retracing significantly from its highs, and they are also noting that it may dip slightly lower before continuing to extend its upwards momentum.

Bitcoin Surges to Over $10,000 in Massive Rally Before Retracing

At the time of writing, Bitcoin is trading up over 16% at its current price of $9,250, which marks a notable surge from its recent lows of $7,400 that were set yesterday morning.

This massive surge allowed Bitcoin’s price to surge as high as $10,300 before its bulls quickly lost their strength and led the cryptocurrency to drop as low as $9,000. This retrace signals that bulls over extended themselves during yesterday’s rally and may mean that further losses are imminent.

Importantly, BTC has been able to hold above a key support level despite its massive retrace, which may mean that it will be able to extend its momentum in the near-future.

Big Cheds, a popular crypto analyst on Twitter, spoke about this in a recent tweet, saying:

“$BTC #Bitcoin daily – what’s crazy is even with a near $1500 pull back the price is STILL above the upper BB as I send this tweet.”

BTC May Retrace Towards $8,500 Before Rally Continues

Bitcoin may drop lower in the near-term before it begins climbing higher, with one popular analyst group targeting $8,500 as a good entry point for fresh spot and long positions.

Trading Room spoke about this in a recent tweet, pointing to the charts seen below.

“Buying #Bitcoin. Conservative Entry. Trying to Scalp #BTCUSD 8850-9000 Area aggressively but also looking for a safer re-entry for CASH Portfolio. 8525-8775 zone offers a better & safer. Area to enter $BTC. Interim Target 9750. If Breakout,Target 1 – 12000,” he explained.

The coming few hours and days may clarify the long-term importance of this latest movement, as an ability for BTC to hold above its near-term support levels may allow bulls to further extend their upwards momentum.



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