- Bitcoin struggles to contain losses above $9,700 support after falling from levels above $10,500.
- Recovery is possible as long as Bitcoin rises above the falling wedge pattern resistance.
Bitcoin is struggling to secure support above $9,700 following a painful retreat from last week’s highs of $10,549 (on Coinbase). The weekend session was characterized mainly by increased selling pressure. With the path of least resistance maintaining the downside, BTC/USD shuttered several support areas including $10,400, $10,200 and the 61.8% Fibonacci retracement level of the last drop from $10,549 to $9,083 around $10,000.
Meanwhile, Bitcoin is trading at $9,775 amid increased selling activity at the beginning of the European session. The retreat is following a falling wedge pattern as Bitcoin records lower lows and lower highs.
BTC/USD 1-hour chart
All technical indicators point towards bearish correction in the near term. The RSI is under the average and almost brushing shoulders with 30. In case a reversal fails and the RSI digs deeper into the oversold region, BTC/USD could spiral further towards the support at $9,600. The momentum indicator clearly shows Bitcoin being in the hands of the bears, at least for now.
On the brighter side, the formation of a falling wedge pattern in a short-range, suggests an eventual pullback in the price of Bitcoin. Recovery could soon retake the position above $10,000 as bulls focus on $10,500 and $11,000 respectively.
Bitcoin Key Levels
Spot rate: $9,792
Relative change: -139
Percentage change: -1.4%
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