- Bitcoin price pushing down on key support areas amid growing volatility.
- Bitcoin must break above the descending channel resistance in order to focus to higher levels above $10,000.
Bitcoin has slumped right back under $9,500 after failing to break above the critical $10,000 level. The price has been pushing down on key support areas in the past few days amid growing volatility. Unlike June where Bitcoin price skyrocketed to new yearly highs around $13,800 this month has seen BTC/USD fail to sustain gains above key levels on several occasions.
The recent drop occurred after attempts to sustain gains above $11,000 failed miserably. The declines that followed as reported by Coingape pushed the price under $10,000. The breakdown continued towards $9,000 yesterday before a bounced occurred.
Looking at the hourly chart, the rejection at $10,000 demoralized the bulls who have been getting tired of the rollercoaster rides. Rising selling pressure is risking the capacity for the next support target at $9,000 to hold ground and resist breakdown.
BTC/USD 1-h chart
However, the technical picture shows the rejection from the highs close to $10,000 could have been a healthy correction meant to give Bitcoin a boost in its next assault at $10,000. At present, $9,400 appears to be establishing as support with the price building a bullish moment towards $9,500.
The Relative Strength Index (RSI) is heading back up after hitting a low at 37. Continued traction above the average will further strengthen the moment and the reversal to $10,000. The Moving Average Convergence (MACD) upward trend has stalled slightly below the positive area suggesting the presence of selling pressure.
Bitcoin must break above the descending channel resistance in order to focus to higher levels above $10,000. In the short-term, we can expect Bitcoin price to swing up and down between $9,000 and $10,000.
Bitcoin Key Technical Levels
Key hurdles $10,000, $11,000 and $12,000 supply zone.
Key support areas: $9,400, $9,000 and $8,800.
MACD 1-h chart: Stuck in the negative area.
RSI 1-h chart: Pointing upwards; suggests strengthening momentum.
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