- Bitcoin price continues to narrow with lower highs below $12,000 and higher lows under $10,000.
- Bitcoin’s Bollinger Band suggest possible trading opportunities from the developing squeeze.
Bitcoin price is holding on to the long-term bullish trend in spite of the recently witnessed up and down movements. The bullish bias remains intact for the largest cryptocurrency in the world even as the price hovers above the historical support ($10,000). The impressive rally commenced in April took a downturn in the last week of June after Bitcoin hit new 2019 highs around $13,800.
The trend following the reversal has been narrowing below a descending resistance. Bitcoin has in the last 10 weeks witnessed lower highs under $12,000. At the same time, the downside has been characterized by higher lows below $10,000.
A current 1-hour chart shows Bitcoin narrowing within a forming falling wedge pattern. In fact, the time of writing, Bitcoin’s uptrend hints a breakout. If this breakout is not false, BTC/USD could gain momentum to ascend above the first resistance at $10,200. Glancing higher, the 100 Moving Average will offer resistance. For now, Bitcoin bulls eye $10,400 level which is possible in the near-term if the current technical levels stay put.
BTC/USD 1-hour chart
Bitcoin is trading above the Bollinger Band 1-hour middle curve. A developing squeeze suggests that Bitcoin is near a breakout. Similarly, the fact the price is trading close to the upper band means that Bitcoin is overbought in the short-term and likely to regress.
The conditions are witnessed with the Stochastic RSI currently brushing shoulders with the overbought (70) region. A possible reversal suggests an imminent reversal for Bitcoin in the near-term.
In the event a reversal ensues, traders need to adjust their positions to cater for tentative support areas $10,100, $10,000 and $10,800. Acute reversal patterns could target lower support zones at $9,600, $9,400 and $9,000.
Bitcoin Key Levels
Spot rate: $10,170
Relative Change: -5
Technicals: Positive in the short-term