- Bitcoin breakout looms as bulls retake control pushing the price above $10,600.
- The immediate upside is limited at $10,400 amid the ongoing uncertainty.
Looking at the hourly chart of the BTC/USD trading pair, we can spot the zone where “uncertainty” exists. The zone where the battle between the bull and the bears is taking place. The zone is located between $10,200 and $10,500. Indecision has clouded the trend in this area and the price has no sense of direction. While the bulls have recently been in control pulling BTC from regions around $9,500, the bears appear to have taken control locking the price below $10,600. However, we expect Bitcoin to trend higher as analysis shows bulls have the potential to win the battled.
BTC/USD 1-hour chart
In the event the resistance at $10,500 gives in to buying pressure, the price will zoom upward to the next resistance at $10,600. The next leg from here is $11,000- $11,200. On the downside, its Bitcoin price is locked under $10,200, there will be a higher chance of short Bitcoin. The next stop from here is $9,300 and $9,200 respectively.
The chart shows the price trading above the 50 Moving Average as well as the 50 Exponential Moving Average. The immediate upside is limited at $10,400 but the moving averages are in line to offer short-term support.
Meanwhile, the Relative Strength Index (RSI) is forming a higher low pattern. Although the overbought zone is yet to be breached, the current momentum leans towards the bulls.
Therefore, in my opinion, based and based on the analysis, Bitcoin is likely to win this battle and retrace the steps above $11,000. The buyers, however, must increase their confidence in the momentum in order to realize the breakout.
Key Technical Levels
Spot rate: $10,362.50