• Bitcoin price breakouts from a minor short term double-bottom pattern but fails to rise above $10,400 resistance.
• Bitcoin could be on its way to $12,000 as long as the range resistance at $10,600 is broken.

Bitcoin price has been trading in a narrow range between the recently established support at $9,900 and the resistance at $10,600. The drab trading is taking place after last week’s sharp plunge from highs above $12,000. The losses were not unique to the flagship cryptocurrency because both major and minor cryptoassets lost key positions and explored lower levels.

BTC/USD 1-hour chart

At the time of writing, Bitcoin is trading at $10,336. The shallow upswing is taking place after a subtle double-bottom pattern in the hourly range. The initial bottom was precisely formed during BTC’s breakdown to levels under $10,000 where it found support at $9,900. The second bottom was formed on September 7, as BTC explored the levels under $10,000 again. The recovery from the pattern appears to be losing momentum in spite of the pattern.

Bitcoin Technical Analysis

Bitcoin is facing acute resistance at $10,400, $10,500 and $10,600. Most analysts believe that once these three hurdles are behind the flagship cryptocurrency, the price would easily elevate to areas higher than $11,000.

Meanwhile, the Relative Strength Index (RSI) in the daily range seems to be nurturing an uptrend following a reversal from the support at 30. As long as the RSI’s upward movement stays intact, Bitcoin bulls will continue to throw jabs at the above-mentioned resistance zones.

On the downside, support is envisaged at $10,200, $10,000 and $9,900. In addition, the 100 Simple Moving Average (SMA) at $9,689.68 is in line to prevent further losses that may be eyeing $9,000, in case of a reversal from the current price level.

Related reading: Bloodshed As Bitcoin Price Plummets Below $10,000

BTC/USD daily chart

The formation of a bearish pennant pattern warns investors that it might not be the right time to buy the deep hence a call for caution. The longer Bitcoin stays under $10,600, the stronger the bears get. If the pattern’s support is shattered, BTC could be on a path to $8,000.

Bitcoin Intraday Levels

Spot rate: $10, 316

Relative change: -45.24

Percentage change: 0.56%

Trend: Bearish bias

Volatility: Low

Read more: Bitfinex Files Motion to Dismiss Allegations for Bitcoin Manipulation, Cites Lack of Proof

About Author

John Isige

John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige