Bitcoin Technical Analysis: BTC Imminent Breakdown To Refresh $10,200 Before Recovery


  • 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.

Read also: Low Bitcoin Volatility May Lead to Massive Move Soon

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

Percentage: -0.52%

Trend: Bearish

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 707 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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