Bitcoin (BTC) dipped below the support of the tight $9,200 to $9,600 range on Feb. 4. However, the bears could not build up on the breakdown. This shows that bulls continue to buy the dips. The upsloping moving averages and the RSI in positive territory suggest that bulls are in command.Today, the buyers have carried the price close to the top of the range and then set a new 2020 high at $9,744. The breakout of this tight range is a positive sign and it suggests the BTC/USD pair can rally to $10,360, which is likely to act as a stiff resistance.
The short-term trend will weaken if the bears sink the pair below the 20-day EMA at $8,980. Below this level, a drop to $8250 is possible. For now, I suggest traders retain the stop loss on the long positions at $8,200. If the price sustains above $9,600, the stops can be trailed higher to $8,900.
The short-term trend will weaken if the bears sink the pair below the 20-day EMA at $8,980. Below this level, a drop to $8250 is possible. For now, I suggest traders retain the stop loss on the long positions at $8,200. If the price sustains above $9,600, the stops can be trailed higher to $8,900.