- Bitcoin longs traders’ belief in Bitcoin’s recovery create fresh demand boosting the price above $10,000.
- Bitcoin re-enters the broken symmetrical triangle support; potential for growth towards $10,400 is immense.
Bitcoin price is confirming my prediction that the drop to $9,600 on Thursday was a necessary evil. As any ardent trader or investor can tell you, there is not a single bull market that does not have fluctuations. The most important thing is to spot a higher low pattern and the resilience of the asset to stay above critical levels.
XBT/USD 4-hour chart
The dive to $9,600 came as a shock to many investors and traders alike. It was likely triggered by whales transferring a colossal amount in the leading cryptocurrency. Despite that, the four-hour XBT/USD Kraken price chart shows a breakdown was at its prime and could not be averted. Bitcoin has in the past several weeks narrowed towards $10,000 level. The upside is capped by a descending resistance while the downside has been recording a continued lower high pattern.
The formation of a symmetrical triangle as observed on the chart gave way to declines following a period of consolidation above $10,000. The slide was met by immense buying pressure as longs traders took positions betting on an increase in value. XBT/USD reclaimed $10,000 and is now holding ground at $10,171.
Immediately capping movement upwards is the 100 moving average (MA) on the four-hour timeframe chart. The price is also back in the apex of the triangle, however, a retracement is expected in the near-term.
The relative strength index (RSI) is above the average but pointing downwards as an indication to the growing selling pressure. On the other hand, the moving average convergence divergence suggests that buyers have the energy to hold Bitcoin price above $10,100 (short-term) support. Other key support areas to keep in mind are $10,000, $9,600 and $9,200.
XBT/USD Key Technical Levels
Spot rate: $10,171
Trend: Short-term bearish
Resistance: MA 100, $10,400 and $10,800.
Support areas: $10,100, $9,600 and $9,200.
RSI: Shows bears in control
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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