Bitcoin Technical Analysis: BTC Retreat Imminent After Hitting Barrier At $10,800

By John Isige
Published September 25, 2020 Updated September 25, 2020
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Bitcoin Technical Analysis: BTC Retreat Imminent After Hitting Barrier At $10,800

By John Isige
Published September 25, 2020 Updated September 25, 2020
  • 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.

Read also: Bitcoin Price Prediction: BTC Upward Momentum Stalls Under $10,600 But Bulls Eye $11,000

BTC/USD daily chart

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

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

Volatility: Low

Read more: Four Things to Know About Purchasing Bitcoin Safely

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
John Isige
1164 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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