Bitcoin Price Faces Brutal Rejection Above $9,800

Bitcoin price has been smashing through each overhead resistance level with relative ease throughout this entire 2020 rally thus far. However, the latest push above $9,800 was met with a powerful rejection that sent Bitcoin price back over $200 in a matter of minutes. Could this be the first sign of a reversal?

Bitcoin price has rallied well over 50% from lows set back in December 2019 around $6,400. After six months of a downtrend, the rally took many crypto investors by surprise. The rally has caused Bitcoin to reclaim the 200-day moving average and it has flipped other key resistance levels into strong support.

Just like the rally from $3,100 to $14,000 smashed through resistance levels many thought would be impenetrable, Bitcoin has sliced through resistances throughout the $8,000 and $9,000 range with relative ease and has been well on its way toward a retest of the “FOMO trigger” level of $10,000. But before Bitcoin price could reach $10,000, it was just swatted back by a powerful, $200 rejection in a matter of minutes. The hourly candle on Bitcoin price charts shows a candle resembling the lightsaber of Star Wars character Darth Maul, with a long wick at either end. The 5M chart shows that within 25 minutes of price action, Bitcoin had lost over $200 in value.

The leading cryptocurrency by market cap made another attempt to climb higher as more and more crypto investors enter “buy the dip” mode. However, bears continue to hold the cryptocurrency under $9,800 and push for a reversal to the ongoing uptrend. If bears are successful in defending $9,800, bulls will need to prove support at $9,500 is strong enough to maintain the rally’s legs, or else another attempt at $10,000 may be put off for a while, while Bitcoin price cools off and refuels its jets.