- XBT/USD tests $10,400 resistance but fails to make headway.
- Technical indicators suggest a continued downtrend in the coming sessions.
Bitcoin pushed the price relatively higher following the falling wedge pattern breakout I discussed last week. The break made headway above the 100 Simple Moving Average (SMA) four-hour chart. Additional movement over the weekend session pulled XBT/USD above the critical $10,400. However, little was progress was made above the level leaving a gap that continues to be explored by the bears.
Some analysts like TheDinoChart believes that it is time to short Bitcoin as it tested the resistance. He believes that Bitcoin is ready to go down and suggests an entry around $10,325 and the first target at $9,990. Further down, the analyst places the second target for XBT/USD at $9,385.
XBT/USD four-hour chart
Looking at the four-hour chart, we can spot the beginning of a consolidation phase. As long as the price stays above the 100 SMA, chances of an upside breakout are huge. Besides, there is a likely breakout above the symmetrical triangle.
The Stochastic RSI has continued is almost hitting the oversold levels following the retreat from the overbought region. The visible bearish divergence suggests that selling pressure is at its peak. On the contrary, the buyers have not given up yet as the moving average convergence divergence (MACD) moves horizontally at the mean line (0.000). This means that even though the bears are in charge, they will need to work harder to push Bitcoin below the next support targets at $10,200 and $10,000.
XBT/USD key Technical Levels
Spot rate: $10,310
Support target: $10,200 and $10,000
Key resistance: $10,400
Impending symmetrical triangle breakout
Stochastic RSI: Near oversold conditions
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
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