- Bitcoin narrows towards the pivotal $10,000 level in anticipation for a magnificent triangle breakout.
- Lower consolidation will take the center stage prior to the impending breakout.
Bitcoin seems to mundanely lethargic under $10,000 on the first day of the week’s trading. The weekend trading was marked by a sustained downward correction after the upper leg from last week’s support at $9,600 to make headway above $10,300. The price continues to narrow towards $10,000 with Bitcoin’s upside limited by a descending trendline resistance.
Interesting, the beautiful falling triangle continues to form three months after it started. Besides, Bitcoin has shown the ability to bounce off a couple of support zones (show in green on my chart). Every Bitcoin batter bulls have given way to a slide below $10,000 the price has either bounced off the support zone 1 or the support zone 2.
XBT/USD daily chart
It is clear that these two zones are interesting ‘buy’ zones and traders can in the meantime place their buy limits here as Bitcoin gradually moves closer to an expected volcanic triangle breakout.
Short-term Technical Picture
Looking at the daily chart, Bitcoin is trading within a strong support area. The moving average convergence divergence suggests that sideways trading could prevail in the coming sessions. The MACD minor negative divergence signals a market currently controlled by the bears.
Consequently, the price is below the moving averages in addition to the 50 MA on the daily chart increasing the divergence below the 100 MA. This means that a lower consolidation is expected before Bitcoin spikes up in a breakout past the triangle resistance. If Bitcoin manages to return to levels around $11,000, there is a huge chance that the upside could refresh the resistance at $12,000.
XBT/USD Technical Levels
Spot rate: $9,935
Relative change: -80
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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