Bitcoin Price Analysis: BTC/USD Reversal To $10,400 Impends Following Unsustainable Sharp Ascending Channel

Bitcoin
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Bitcoin Price Analysis: BTC/USD Reversal To $10,400 Impends Following Unsustainable Sharp Ascending Channel

  • Bitcoin price drops below the ascending channel after gains became unsustainable above $11,000.
  • BTC/USD is staring into a possible freefall to $10,400 if the bearish biased technical picture remains unchecked.

Bitcoin price is holding marginally under $11,000 following a rejection from the new year high around $11,434 (on Coinbase). The recovery from last week was sharp and fulfilling as observed on the 4-hour chart. Already, sustaining gains above $11,000 has become difficult. For this reason, BTC is teetering at $10,888 amid an existing strongly bearish trend. The volatility across the market is expanding, in other words, sellers could gain traction in the coming sessions.

Related reading: Bitcoin Price Analysis: BTC/USD Journey To $20,000 Begins As Cup And Handle Pattern Forms

At the time of writing, Bitcoin has already corrected under the sharp ascending channel support. Technically, Bitcoin is hanging at the edge of a cliff. The Relative Strength Index (RSI) is currently struggling to hold above 70 (overbought line). Retreat below this zone is likely to encourage more sellers to join the market.

The same bearish trend is emphasized by the MACD after it stalled at 387. The bullish divergence has narrowed and almost giving way for a bearish one. If this technical picture remains unchecked, BTC/USD plummeting to $10,400 would be unstoppable.

BTC/USD 4-hour chart

BTC/USD price chart by Tradingview

On the bright side, it is not all lost for the bulls as they can easily redeem themselves owing to the fact that the 50 SMA is still expanding the gap above the 100 SMA in the 4-hour range. This shows that buying pressure is still present in smaller margins across the market; even enough to hold the price above the initial support at $10,800.

If push comes to shove and Bitcoin spirals, the target on the downside is $10,400 but first support at the 61.8% Fibonacci retracement level must be broken. Other lower buyer congestion areas encompass the 50% Fibo at $10,200, $9,950, the 50 SMA, 100 SMA and $9,600.

Read moreThree Reasons Why Bitcoin [BTC] Bulls are Not Yet Tired

Bitcoin Intraday Levels

Spot rate: $10,888

Relative change: -40

Percentage change: -0.37%

Trend: Strongly bearish

Volatility: Expanding

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Bitcoin Price Analysis: BTC/USD Reversal To $10,400 Impends Following Unsustainable Sharp Ascending Channel
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Bitcoin Price Analysis: BTC/USD Reversal To $10,400 Impends Following Unsustainable Sharp Ascending Channel
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Bitcoin price drops below the ascending channel after gains became unsustainable above $11,000. BTC/USD is staring into a possible freefall to $10,400 if the bearish biased technical picture remains unchecked.
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Author: John Isige
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
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John Isige 607 Articles
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
Follow John @