- Bitcoins bullish momentum loses steam on encountering the 50-day EMA resistance.
- Declines linger as long as BTC cannot climb above the 50% Fibonacci level.
Bitcoin explored levels in the key support range between $10,000 and $10,200 earlier this week. The last few days have been used by the bulls to correct the retracement from the resistance at $11,200. Initially a hurdle at $10,600 sent buyers back to the drawing board. However, Bitcoin sprung upwards once again on Thursday. This time the hurdle at $10,600 was easily pushed into the rearview. Unfortunately, bulls seem to be struggling with the resistance at the 50% Fibonacci taken between the last swing high of $12,484 and a swing low of $9,050.
The Relative Strength Index (RSI) has recovered from levels closer to the oversold but is holding ground at the midline. A sideways movement suggests that bulls are getting exhausted. It is essential that the resistance at $10,788, a confluence formed by the 50-day Exponential Moving Average (EMA) and the 50% Fibonacci level is overcome.
BTC/USD daily chart
The movement to the north will give the flagship cryptocurrency energy to bring down the resistance at $10,800. Buyers will also get an opportunity to shift their focus to $11,000 and $11,200, respectively.
It is worth mentioning that the failure to rise above the immediate resistance at the confluence could culminate in Bitcoin settling for a retreat in order to create demand at lower levels. On the downside, support is envisaged at the 100-day EMA. If declines overshoot this zone, the support range at the beginning of the week will come in handy. Note that, September’s primary support at $9,800 remains intact and the last resort that could be used to halt declines eyeing $9,500 and $9,000.
Bitcoin Intraday Levels
Spot rate: $10,706
Percentage change: -0.32%
Relative change: -0.34
Trend: Short term bearish bias