- 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%