Bitcoin price extended breakout above the falling wedge pattern as bullish sentiments grew in the market.
Bitcoin buyers have a mission to defend $9,500 support and focus on improving the technical picture in the near-term.
Bitcoin price pushed above the falling wedge pattern I explored on Thursday. This extended the bullish action above the stubborn resistance at $9,300. The journey above $9,600 was a smooth one with Bitcoin trading weekly highs of $9,620.
At the time of writing, BTC/USD is dealing with increased selling activity. The price is pressured towards key support levels. For instance, BTC has already slipped under $9,600 and is exchanging hands at $9,524.
It is essential that buyers work extra hard to establish strong support above $9,500. This will allow them to keep the focus on $9,600 and higher levels towards $10,000. Otherwise, continued downward action could gravitatively pull Bitcoin below the critical $9,000 level.
Meanwhile, technical indicators suggest that if buyers are not too careful, sellers could eventually pull the rug right under them. The Relative Strength Index (RSI) for instance has started to retreat towards the average after Bitcoin hit a wall at $9,600. If the bearish action continues, the sellers’ confidence in the market would increase too. Besides, support at $9,000, and previous week support at $8,600, BTC/USD primary buyer congestion spot is the region at $8,000. This zone is home to the 100-day Simple Moving Average (SMA) and the 61.8% Fibonacci level of the last drop from $10,512 to a swing low at $3,864.
Luke has had a long interest in financial technology, especially cryptocurrency and blockchain. With a Bachelors degree in Journalism and Media, Luke is dedicating his writing skills for the digital currency sphere.He can be contacted at email@example.com