- Investors are finally coming into terms with Bitcoin’s false breakout above $10,500.
- Bitcoin seeks a bottom; possibly $8,800 to trigger the next rally towards $10,000.
Bitcoin price has engaged the reverse gear as the maximum throttle hit a snag at $9,500. The tentative support at $9,200 has failed to offer the expected support. Meanwhile the price treading fast towards $9,000.
The short-term one-hour chart openly displays a building bearish trend that is likely to break the key $9,000 support. With the Relative Strength Index (RSI) almost at the oversold, it is becoming apparent that $9,000 is not a strong enough support to push for a reversal really to $10,000. However, if Bitcoin tests the next support target at $8,800 (a previous resistance level) the extremely oversold conditions are likely to result a significant recovery.
BTC/USD 1-hour chart
Meanwhile, Bitcoin is trading within a falling triangle that is likely to be broken before the American session ends. The bottom at $8,800 will not happen today, but there is a chance he week will not end before it is tested. Amid the building momentum, so is the trading volume.
Bitcoin must reclaim its position above $9,200 to be able pave the way for re-emergence above $9,500. Further correction above the Moving Averages (MAs) could boost Bitcoin towards $9,600 short-term supply. The bulls must be careful not to lose focus of the main target at $10,000.
Bitcoin Key Technical Levels
Support/short-term bottom: $8,800
Resistance: $9,200 and $9,600