Bitcoin struggles to hold above $9,400 in the near term; a return to $9,000 seems possible.
Two triangle patterns await Bitcoin ready for a rally to $10,000 and $14,000 respectively.
Bitcoin price slipped marginally below $9,000 on Monday after facing increased selling activities. It became difficult to hold the price above $9,000, leading to a slide under $9,000 to first, allow more buyers to enter the market at a lower price and second, to allow Bitcoin to find balance before attempting another attack on the critical resistance at $9,500.
While the move to trade under $9,000 worked almost immediately with Bitcoin reclaiming its position above $9,000, the momentum has stalled under $9,500 again. The crypto is trading at $9,405 at the time of writing. On the downside, Bitcoin is immediately supported by symmetrical triangle support. The ascending trendline has been in the picture since the massive plunge in March. Bitcoin’s recovery from the levels under $4,000 has been gradual but steady.
Meanwhile, the technical picture is gradually turning bullish after a darksome Monday. The RSI has slowed down the downward momentum and could end up stabilizing above the midline. Any upward movement from here would signal a stronger bullish grip and increasing buying opportunities.
BTC/USD daily chart
However, the trend observed with the MACD cannot be ignored. It shows that we traders cannot ignore the presence of the selling pressure. The MACD is seeking balance above the mean line. A bearish divergence from the indicator highlights the apparent presence of the bulls.
On the brighter side, the formation of a symmetrical triangle pattern hints that a breakout is possible in the near term as long as Bitcoin finds proper trading volume and good fundamental support. Gains above $9,500 would help guarantee, correction past $10,000. If Bitcoin does not slow down the momentum after breaking the rising triangle resistance at $10,000, then the next rendezvous would be above 2019 highs at $14,000.
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 firstname.lastname@example.org