- Bitcoin has been narrowing towards $10,000 under descending resistance.
- A bearish triangle breakdown could send Bitcoin in the range of $8270 – $8300.
Bitcoin is miraculously staying above $10,000 following the drop to levels close to $9,856. However, recovery from the low failed to break $10,300 hurdle. Diminishing selling pressure hit a snag around $10,274 leaving a gap currently being explored by the bulls. The price at press time is hovering around $10,100. Besides, the lethargic movement is connected to the decreasing volume in the last few days.
The 4-hour chart shows Bitcoin narrowing towards $10,000 for three months in a row. The price become allergic to $11,000 but it has a higher affinity to a lower high pattern trend. The formation of a bearish triangle is likely to send Bitcoin further down. Especially with $10,000 support having been broken, the only support that needs to give in before a massive to comes is $9,800.
BTC/USD 4-hour chart
The descending resistance also shows that Bitcoin could continue to dump and until we find a viable bottom (key support). BillCharison, an analyst with Tradingview predicts that Bitcoin will continue with the dumping trend it started towards the end of June.
“If the price dumps lower than the bottom of the triangle, then we need to wait for another bottom in the range of $8270 – $8300, because it is one of the strongest support now. In the case of the breakdown, this zone is perfect for opening a LONG position.”
A short-term bullish trend could help avert testing of $9,800. The Relative Strength Index (RSI) and the Stochastic RSI both have tested the oversold levels at 30. A slightly visible divergence suggests that buying action is coming back. If the indicators can manage to pull towards the average, the resistance to watch will be $10,600 and $10,800.
Bitcoin Key Technical Levels
Spot rate: $10,075
Relative Change: -21
Trend: Slightly bullish
RSI: Slightly bullish above 30
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
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