BTC/USD Bounce Off The 200 MA In The Offing; Could Elevate Closer to $10,000

bitcoin price
bitcoin price

BTC/USD Bounce Off The 200 MA In The Offing; Could Elevate Closer to $10,000

  • Bitcoin defends key support above $8,000; reversal from the 200-day MA is likely.
  • A falling wedge pattern could elevate Bitcoin closer to $10,000.

Bitcoin has shown resilience by bouncing off key support. In the short-term this a signal for a minor reversal to the upside. However, affinity to declines will remain high as long as BTC/USD is unable to rise above the zone around $9,000.

Following the devastating 10% drop on Tuesday, Bitcoin opened the Pandora box paving the way for a transition from a bullish trend to a bearish trend. The next target on the downside is $7,200.

The daily chart shows dips below the 200 moving average (MA) having been averted or short-lived. At the moment, BTC is exchanging hands around $8,400 on Coinbase. Still defending the $8,000 support is the 200-day MA.

BTC/USD daily chart

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

A broader look at the chart also shows Bitcoin still holding in the confines of a falling wedge pattern. This presents a catch-22 situation where a bounce off the support could push Bitcoin into a magnificent breakout towards $10,000. On the other hand, if Bitcoin finds its way below the wedge pattern, buyers could be in for another rollercoaster ride below to $7,200 and below.

Also Read: CME Futures Contracts Expire Tomorrow, Will Bitcoin Price Plunge Further?

From a short-term perspective, Bitcoin has a bearish bias. The moving average convergence divergence (MACD) displays a strong negative picture. The wide divergence signifies the control the bears have on the price. On a brighter side with reducing volume, the dips are likely to be shallow.

The biggest task for the bulls in the short-term is to put Bitcoin a leash around $8,400 support. From here an assault on $8,500 support would be easier to stage.

Bitcoin Key Technical Levels

Spot rate: $8,391

Relative change: -47

Open: $8,436.65

High: $8,436.04

Low: $8,321.16 Trend: Generally bearish.

Volatility: Low

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BTC/USD Bounce Off The 200 MA In The Offing; Could Elevate Closer to $10,000
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BTC/USD Bounce Off The 200 MA In The Offing; Could Elevate Closer to $10,000
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Bitcoin defends key support above $8,000; reversal from the 200-day MA is likely. A falling wedge pattern could elevate Bitcoin closer to $10,000.
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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 242 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

Follow John @