- The ranging movement is likely to result in more downward movements towards $8,000.
Bitcoin recently made an attempt to push for more gains but hit a snag slightly above $9,600. The main target for the past two weeks has been the $10,000 resistance. However, Bitcoin’s price got interested in a consolidative movement before the new breakout came into play. Therefore, it is essential to identify the current trend and its next course of action. Is it going to be an upward or a downward movement?
BTC/USD daily chart
The Bearish Scenario
In the event Bitcoin closes the trading in the negative for the second day, it will give the bears more confidence to increase their entries, in turn, pushing the price lower. Note that the bulls tried to push for a breakout above $9,600 but failed to stay at the top of the daily range. On the other hand, sellers have maintained consistency in their push for revenge.
Moreover, a bearish divergence in the Moving Average Convergence Divergence (MACD) and the downward movement of the RSI suggest that bearish action could take precedence. If the price breaks the ascending trendline, the 61.8% Fib level support and extends the losses below the 200 SMA, it will cement the bearish signals; where it could close the week close to the 100SMA (marginally above $8,000).
The Bullish Scenario
As far as bullish signals are concerned, Bitcoin bulls are depending on their ability to keep above the accelerated trendline (blue dotted). If the buyers push the price north without volume and supporting fundamentals, breaking the $10,000 will be an uphill task. However, even if the price drops to $8,000, the market will be able to keep the uptrend provided the main trendline stays in place.
Bitcoin Key Levels
Spot rate: $9,282
Relative change: 3.31
Percentage change: 0.02%
Trend: Short term bearish bias
Bitcoin buyers attempt to push above $9,600 towards $10,000 fails. The ranging movement is likely to result in more […]