- Bitcoin refreshes levels below $10,000 to create more demand for gains towards $11,000.
- In spite of the drop to $9,600, Bitcoin is still trending generally up above a three-months trendline.
The brief altcoin boom has been cut short by Bitcoin negative movement that pierced $10,000 tentative support. Bitcoin narrowing move has for several days been hinting a breakdown with some analysts predicting a return to $9,000.
Besides, the lower high pattern and the higher pattern Bitcoin has continued to form in the last couple of months proposes that a breakout impends. However, the biggest question remains to where this breakout will take BTC? It can either approach $20,000 towards the end of the year as have predicted many experts such as Tom Lee. On the flip side, Bitcoin could hit levels closer to December lows ($3,150).
Meanwhile, Bitcoin has found balance after testing the support at $9,600. An ongoing recovery is pushing Bitcoin towards $9,900. In fact, the oversold conditions highlighted by the relative strength index (RSI) suggest that a reversal is long overdue.
BTC/USD one-hour chart
Looking at the moving average convergence divergence (MACD) in the hourly timeframe, I can tell the strength Bitcoin bears have. The minor negative divergence shows that the sellers have the upper hand but the buyers also have the energy to defend the immediate support areas at $9,800 and $9,600 respectively.
Despite the correction below $10,000, Bitcoin is still trading within a developing long-term symmetrical triangle. The price is also back above the three-months trendline, an indication that an uptrend still exists.
To be on the safer side, it is important that the buyers push to reclaim $10,000 broken support. Moreover, trading above the 100 moving average (MA) will open the door for gains that could culminate in a breakout above the mentioned symmetrical triangle pattern.
Bitcoin Key Technical Levels
Spot rate: $9,872.50
Relative Change: -281
Trend: Strongly bearish
RSI: Signals a reversal due to oversold conditions
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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