- Bitcoin price volatility goes down amid expanding bearish volume.
- The inability to return above $10,000 is shifting the focus back to the $8,000’s.
Bitcoin price has been on a rollercoaster ride in the past three days. The analysts who predicted October to be a good month had their wishes fulfilled with BTC’s ballistic rise above $10,500. A monthly high was formed around $10,542 (on Coinbase) before a sharp reversal movement tested the region at $9,000. While recovery towards $10,000 was also immediate, the price has adjusted to the levels around $10,300.
Looking at the daily chart for BTC/USD the falling wedge pattern I have explored severally finally culminated in an expected breakout. However, the lethargic movement around $10,400 makes one wonder if Bitcoin is finally in a rally. If the rally is justified Bitcoin bulls need to pull above the support at $10,200 and stay focused on $11,000.
BTC/USD daily chart
On the contrary, the prevailing trend suggests that a reversal under $9,000 is not entirely out of the picture. For instance, the Relative Strength Index (RSI) which was on an upward roll, is now at the beginning of a retreat. A continued downward slope could encourage more selling entries and lead to price falls.
On the brighter side, the bulls can ignore the retreat and push towards $10,000. The RSI is likely to enter the overbought region (RSI). This is because Bitcoin is not yet overbought and could trend higher if technical levels can remain positive.
The upside is immediately limited by the 100-day Moving Average (MA). The 50-day MA is offering support at $8,873.22. Other key support areas to consider are $8,000 and $7,400.
Bitcoin Technical Levels
Spot rate: $9,397
Relative change: -152
Percentage change: -1.59%
Trend: Bullish (short-term)
Support $9,000, $8,000 and $7,400
RSI: Retreating as a sign of building bearish pressure.
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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