Bitcoin Stalls At $9000 - Forex News by FX Leaders

January has been a big month for Bitcoin (BTC), as well as the entire cryptocurrency asset class. Over the past three weeks, bidders have dominated the BTC market. Values are up almost $1300 thus far in 2020, a torrid bullish pace. Given the aggregate positivity toward the capital markets in general, one has to wonder if $10,000 BTC is on deck for early February.

Bitcoin, Cryptos Spike To Open 2020

2019 ended for cryptos much like 2018 did; poorly. However, investors appear giddy over the prospects of 2020. Here is a quick look at the monthly action across the leading coins:

Coin                                            %Gain       Key Number

Bitcoin BTC                            +16.87%          $9000

Bitcoin Cash (BCH)                  +75.91%            $330

Ethereum ETH                      +27.39%            $165

Litecoin LTC                           +36.71%             $55

Ripple XRP                             +20.47%           $0.25

So, is the crypto winter finally drawing to a close? I’m not sure that we are there yet, but things are looking good across the entirety of the asset class.

January Bitcoin Futures (BTC) On The Bull To Open 2020

As of this writing, $9000 is the key level for January Bitcoin futures. It has withstood several concerted tests and remains valid topside resistance.

January Bitcoin Futures (BTC), Daily Chart
January Bitcoin Futures (BTC), Daily Chart

Here are a few levels worth watching for BTC as the week unfolds:

  • Resistance(1): Psyche Level, $9000
  • Support(1): Bollinger MP, $8080

Bottom Line: For the past five sessions, BTC has entered a consolidation phase. However, the bullish trend remains intact and a long-side bias is warranted. If we see a pullback from $9000, a buying opportunity will come into play from just above $8000.

Until we see a hard test of $10,000, I will have buy orders in the Bitcoin queue from $8125. With an initial stop at $7845, this trade produces $250 profit using a slightly sub-1:1 risk vs reward management plan.

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About the author

Shain Vernier // US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.
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