- Bitcoin trading at the edge of a cliff, likely to tumble towards $10,200.
- BTC/USD path of least resistance is downwards, especially with a symmetrical triangle pattern.
Bitcoin has been losing ground since it hit a snag at $10,800 earlier this week. The upside is capped below a trendline, forming part of a symmetrical triangle pattern. Tentative support at $10,600 failed to rise to the occasion, paving the way for the losses that refreshed lower levels at $10,500.
Meanwhile, the bellwether cryptocurrency is trading at $10,560 amid a building bearish momentum. Marginally above the prevailing price, the 100 Simple Moving Average (SMA) and the 50 SMA in the 4-hour time frame stand in the way of upward price action.
The Relative Strength Index in the same 4-hour timeframe highlights the growing influence of the bears. Following the rejection near the overbought region on October 5, the trend strength indicator has sustained a downtrend. For now, the RSI is holding above 40 but could resume the journey to the oversold area.
BTC/USD 4-hour chart
Click the link for the chart, to be updated later.
Bitcoin does not have the power to force a reversal, especially with the resistance at $10,600 and the moving averages. Besides, it is dancing within a symmetrical triangle pattern. The pattern can lead to either a breakout or a breakdown. If buyers fail to regain control over the price, selling pressure is bound to increase. A breakdown from the triangle pattern is in the offing mainly if the ascending trendline support is shattered.
The flagship cryptocurrency could revisit the support at $10,200. New demand created at this level will then give the bulls a boost for another attack on critical levels at $10,800 and $10,000. Note that the area at $10,400 will absorb some of the selling pressure in the event of a symmetrical triangle breakdown.
Bitcoin Intraday Levels
Spot rate: $10,560
Relative change: -52