Bitcoin prediction this week February 10 – 16: the price Bitcoin is likely to enter a minor correction
The fundamentals are looking strong but do the technicals also project a bullish stance?
Bitcoin overcame the $10,000 hurdle last week. This is a positive sign as it shows that the bulls continue to buy at higher levels. Anthony Pompliano, co-founder & partner at Morgan Creek Digital, believes that crossing of $10,000 is an important event. He expects Bitcoin to continue its momentum and reach $100,000 by the end of next year.
However, the rise is likely to be gradual. Bitcoin may face several hurdles until it crosses its current lifetime highs at $19,700.
All eyes are currently on the upcoming Bitcoin halving in May. Weiss Ratings has upgraded Bitcoin’s rank to A- (excellent) considering the “improving fundamentals and positive price action ahead of Bitcoin's next halving.”
The fundamentals are looking strong but do the technicals also project a bullish stance? Let’s do the Bitcoin price prediction for this week and find out.
Bitcoin price prediction chart: weekly
Bitcoin continued to move up last week and has reached close to the overhead resistance at $10,550. The bears can mount a stiff resistance between the $10,500 to $11,000 zone.
However, with both moving averages turning up and the RSI in a positive zone, the advantage is with the bulls. Therefore, traders do not anticipate a deep correction from the current levels. The price is expected to consolidate close to the overhead resistance at $10,500.
If the price stays range-bound between $9,500 and $10,500, it will increase the possibility of a break above $10,500. Above this level, the uptrend can extend to $12,000.
Our bullish view will be invalidated if the bears sink the BTC to USD pair below $9,000. If this level cracks, the price might again dip to the horizontal support zone of $8,000 to $7,853.95.
The Bitcoin analysis of the weekly chart suggests that the trend is bullish but a minor correction or consolidation may be expected for the next few days. Let’s do the Bitcoin price analysis of the daily chart to locate the critical levels to watch out for, both on the upside and the downside.
What is your sentiment on BTC/USD?
BTC to USD chart: daily
Bitcoin continues to be in an uptrend. Both moving averages are sloping up and the RSI is close to the overbought zone, which suggests that the bulls have the upper hand. The rise from the recent lows of $6,408.10 has been gradual with a few days of rally followed by a minor correction. However, the sequence of higher highs and higher lows has been maintained.
As the price has reached close to the overhead resistance at $10,500, another minor correction or consolidation is expected. The price might dip to the 20-day EMA, which is likely to act as a strong support. The bears have not been able to sustain the price below the 20-day EMA since January 6 of this year. This shows that the sentiment is to buy the dips to the 20-day EMA.
If the price rebounds off the 20-day EMA, the bulls will make another attempt to carry the price above the overhead resistance at $10,500. However, if the bears sink the BTC to USD pair below the 20-day EMA, a drop to the 50-day SMA is possible.
The Bitcoin price analysis of the daily chart shows the possibility of a pullback to the 20-day EMA. Should the traders use this opportunity to buy or is it a good time to book profits?
Bitcoin price this week February 10 to February 16: How to trade it
Considering the stiff resistance in the $10,500 to $11,000 zone, we suggest short-term traders to book partial profits near this zone. The stop loss on the remaining long positions can be trailed higher to $8,800.
FURTHER READING: Bitcoin price prediction for February 2020: technicals show the coin can move higher
FURTHER READING: Bitcoin halving: could it reach $170K per coin?