Bitcoin price rejected at $9,600 following an impressive recovery from $8,900.
BTC/USD deals with resistance at the 50 SMA while a pennant breakout is delayed but expected.
Bitcoin price closed in on $9,600 on Tuesday after a gruesome trading action on Monday when Bitcoin dived under $9,000 to test the support at $8,900. An immediate reversal took place following freshly created demand. The drop gave more bulls an opportunity to join the market as they anticipate the run-up to $10,000.
Meanwhile, recovery stepped above the 50 Simple Moving Average (SMA) in the 4-hour range. The bulls extended the action upwards but their hope of pulling Bitcoin closer to $10,000 was cut short under $9,600. The 100 SMA stood its ground at $9,600 stopping any chances of a breakout. Bitcoin bulls had to seek balance before staging another attempt, hence, the drop back to $9,400.
At the time of writing, Bitcoin is trading at $9,468 after hitting another rejection at the trendline (forming part of the pennant pattern). The 50 SMA at $9,519.44 is still in line to hinder movement in the short term. A keen look at Bitcoin trend in the last two or so sessions shows that sideways action is prominent.
BTC/USD 4-hour chart
The Relative Strength Index (RSI) is holding the ground above the average line. In addition, the MACD displays a bullish picture with its expected cross above the midline. Moreover, the indicator features a bullish divergence that shows that buyers have the upper hand in spite of the rejection at $9,600.
A breakout above the pennant resistance is expected to catapult Bitcoin towards $10,000. Considering how tight the market was in the last two weeks, we expect gains to continue above $10,400 as more and more bulls become confident in the recovery.
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