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Bitcoin Hits Pause Button After Spectacular Upward Movement

As declines set in, Bitcoin hits the pause button around $11,000 after it had been showing notable movement. Amidst a building bearish momentum, Bitcoin is trading at $10,772. BTC/USD is likely to go below $10,000 and even touch last week’s lows at $9,469.

Bitcoin’s has astonishingly hit the pause button after spectacular movement to levels slightly below $11,000. During the weekend session, Bitcoin was breaking above the 50 SMA (Simple Moving Average) and the 100 SMA one-hour. Consequently, the door for gains above $10,700 was opened by the break above $10,400.

The bears got a gap due to the high formed at $10,958 and they are currently exploring this gap. BTC/USD is likely to plunge under $10,000 if the rising wedge pattern support is broken.

More or less sideways with a bottom inclination is the prevailing trend. The Moving Average Convergence Divergence (MACD) is still within the positive region. The bears have an upper hand as indicated by the slightly bearish divergence. Besides, the Relative Strength Index (RSI) is showing a slow retreat from the overbought. The RSI’s movement towards the average could be an encouragement to the sellers to increase their positions, which would further push the price lower.

Bitcoin has bounced off the 0.382 Fibonacci level over the last 5 days. Price levels have risen sharply since then, testing resistance just shy of $11,000. Price levels could be propelled to $12,000 next week due to an influx of new volume.

No real momentum has built upon MACD despite Bitcoin rising from $9,600 to $10,900 over the last 5 days, and price action has been reasonably slow and steady thus forming such a tight channel.

It’s tricky to determine whether the slow and steady price action indicates weakness in the uptrend, or strength at this point, however, this is something that we will come to know over the coming days. We know the uptrend was unsustainable if price levels break down through the wedge support. This means that the price will likely re-test $9,600. Adversely, it’s likely that the resistance point around $11000 will become a support level.

Confirmation of a new short-term downtrend will arrive once price action drops below the POC (Point of Control) level at $10,350 if price levels do break-down. This is the strongest support before $9,600. It will be useful at the time of trying to gauge the strength of the potential break-down through the wedge support.

According to a recent prediction by a Bitcoin trader on Twitter, Bitcoin is more likely to the breakdown below the $10,200 support. If bitcoin could break the resistance at $10,000, the next stop is likely to be $9,500 and $9,200 mark as per the trader.

Bitcoin Key Technical Indicators

Spot rate : $10,145

Open : $10,142.52

High : $10,233

Low : $9,831.46

Major Support Levels : $10,200 followed by $9,800.

Major Resistance Levels : $10,400, $10,500 and $10,600.

About Shreya Kapoor

20 y/o budding journalist, with a tinge of good vocabulary.

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