- Bitcoin’s price action towards $11,000 still lacks a catalyst.
- Ongoing bearish action is likely to push Bitcoin back in the range between $10,800 and $10,400.
The cryptocurrency market is relatively bullish hours before the weekend session. Bitcoin, in particular, continues to make headway above the simple moving averages; 100 SMA 4-hour and the 50 SMA 4-hour. Moreover, the crypto is extending the bullish action with a gigantic step towards the coveted psychological level at $11,000.
BTC/USD 4-hour chart
Looking back at the performance of Bitcoin in August, the return to levels around $9,300 was necessary. Buying the ‘dip’ is a strategy that many investors fancy and Bitcoin appears to have sparked fresh interest. The correction from the lows was almost magical with barely any resistance at the descending trendline and the former broken support at $10,000.
Moreover, the struggle around $10,400 culminated in gains above $10,800 followed by a consolidation phase between $10,800 and $10,400. The upside is still capped at $11,000 despite BTC posting an intraday high of $10,931 on Friday.
Ongoing bearish action is likely to push Bitcoin back in the range. However, a trendline formed since the beginning of September will become important later.
From a technical perspective, Bitcoin is unlikely to break $11,000 level today. The Relative Strength Index (RSI) is showing oversold conditions and entertaining a retreat below 70. Also, traders must be on the lookout for a possible double-cross of the 100 SMA above the shorter term 50 SMA. This will signal a strengthening bear momentum and a diminishing bullish influence.
Bitcoin Key Technical Indicators
Spot rate: $10,831
Relative Change: 280
RSI: signals a reversal
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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