Bitcoin Technical Analysis: BTC Eyes Retreat Before Another Breakout To $11,000

John Isige Bitcoin News September 30, 2020

bitcoin

Bitcoin Technical Analysis: BTC Eyes Retreat Before Another Breakout To $11,000

  • Bitcoin price is poised for a retreat to the next support at $10,600.
  • The 50 EMA and 100 EMA are in line to offer support to save Bitcoin from the potential fall to $10,600.

The flagship cryptocurrency has been able to rise above the stubborn resistance at $11,000. However, there was an impressive bullish price action over the weekend that saw Bitcoin draw closer to $11,000. Unfortunately, the bullish case was cut short, leaving a gap that has been explored by the bears. BTC/USD refreshed support at $10,600 after which bulls took another shot at $11,000 but hit a barrier at $10,860.

Meanwhile, Bitcoin is trading at $10,810 even as bulls seek support above $10,800. Looking at the Relative Strength Index (RSI), the bellwether digital asset is still in the hands of the bulls. However, a minor retreat made by the RSI suggests that exhaustion is slowly engulfing the bullish camp.

BTC/USD hourly chart

BTC/USD price chart
BTC/USD price chart by Tradingview

If Bitcoin delays the run-up to $11,000, sellers could eventually gain traction, sending the price back to $11,600 support. From there, buyers will have the energy to push to $11,000, mainly riding on newly created demand from investors who choose to buy low. Note that if the support at $10,600 is shattered, Bitcoin may be forced to seek refuge in the next key range at $10,000 – $10,200. The bearish scenario would also confirm a forming rising wedge pattern.

Support is envisioned at the 50 Simple Moving Average (SMA) and the 100 SMA in the hourly range. Bitcoin could invalidate the reversal to $10,600 if the price holds above these moving averages. On the upside, a break above $11,000 would pave the way for gains towards $11,200 resistance, in turn, allowing buyers to shift the focus back to $12,000.

Bitcoin Intraday Levels

Spot rate: $10,800

Percentage change: -33

Relative change: -0.31%

Trend: Short term bearish bias

Volatility: Low

Author: John Isige
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
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John Isige 755 Articles
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
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