- Bitcoin price numerous attempts to break above $10,000 nullified as selling pressure intensifies.
- BTC/USD is technically poised for more losses in the near term especially if support at $9,500 is broken.
Bitcoin price progress (recovery) over the last couple of weeks is in jeopardy following the failure to breach the $10,000 level. The initial surge from lows around $8,100 hit a wall within a whisker of $10,000 on May 14. A reversal from this zone confirmed support above $9,000. The bulls, not giving up, launched another attack on $10,000 which also failed on Monday.
Meanwhile, Bitcoin is trading at $9,615 after losing 1.17% of its value on the day. The existing trend is bearish which means the path of least resistance is to the south. The failed attempts to break and sustain gains past $10,000 led to the formation of a double-top pattern (see chart below). The impact of this pattern is often a bearish one especially if buyers continue to lose momentum amid low trading volume.
From a different technical angle, Bitcoin is poised for the aforementioned losses. If the Relative Strength Index (RSI) is taken into account, its downward trend toward the average (50) hints towards a stronger bearish grip. The continued downward movement would encourage more selling entries and that could bring pressure to key support areas including $9,500 and $9,000.
BTC/USD daily chart
The Bullish Scenario
A glance at the moving averages points to a possible golden cross (the 50-day SMA crossing above the 200-day SMA. In other words, if this pattern comes into play and Bitcoin is treated to immense buying volume, price action would be majestic above $10,000. For now, the best the bulls can do is to hold onto the support at $9,500 and keep their eyes on the goal (breaking above -$10,000).
Bitcoin Intraday Levels
Spot rate: $9,614
Relative change: -116
Percentage change: -1.17%
Trend: Short term bearish bias
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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