- Bitcoin shallow recovery steps above $8,300 but bullish action remains limited.
- Bitcoin price remains lethargic and mundane between the 100 SMA resistance and 100 EMA support.
It is clear that Bitcoin is yet to find a bottom that will set in a trajectory towards $10,000. The trend in the last couple of weeks has been up and down with Bitcoin staying lower at the downside than the upside. For instance, the short-lived breakout above $8,800 last week gravely endangered the support at $8,100 and $8,000.
Moreover, the weekend action was mundane and largely inclined in the sideways direction. Intriguingly, Bitcoin has been able to keep above the short-term ascending trendline as seen on the four-hour chart.
The upside is capped under $8,400 while Bitcoin is pivotal at $8,300. Also limiting movement north is the 100 Exponential Moving Average (EMA) on the 4-hour chart. On the downside, the 100 Moving Average (MA) is in line to offer support above the trendline.
BTC/USD four-hour chart
Bitcoin bulls have a task to defend the 100 MA support and push for gains above the 100 EMA resistance. The action above the EMA and the resistance at $8,400 are likely to pave the way for gains towards the triangle resistance at $8,800. In my opinion, the triangle breakout target is at $10,000. However, in case declines progress under $8,000, $7,200 will the next viable support (possible bottom).
In the meantime, the current trend is slightly bullish especially with the Relative Strength Index (RSI) making a comeback to the upside. The increasing volume coupled with the RSI cross above the average could signal for more bullish action towards $8,800.
XBT/USD Key Technical Levels
Spot rate: $8,318
Trend: Bearish short-term
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