Bitcoin price hits a thick resistance all at $9,500 but bulls are intentional on containing the price above $9,400.
The falling wedge pattern remains the key to $10,000 as long as the breakout is accorded proper volume support.
Bitcoin price is struggling with the amount of selling pressure at $9,500. All attempts to break above this level have been thwarted by acute selling pressure. For instance, On Tuesday, Bitcoin bulls pushed the price far above $9,500 but they hit a thick wall at $9,600. A reversal ensued, sending Bitcoin back to $9,250 support. At the time of writing, BTC/USD has recovered slightly above $9,400 but the selling pressure in the market is has gone nowhere.
Marginally above the market value ($9,400), Bitcoin is facing a hurdle at the 50 Simple Moving Average (SMA) on the 4-hour chart. Before the price wriggles further north, the bullish momentum is challenged by another seller congestion brought about a prominent descending trendline. The trendline forms part of a falling wedge pattern (discussed below).
BTC/USD 4-hour chart
From a technical perspective, Bitcoin is generally dealing with a bearish biased trend. The Relative Strength Index (RSI) is changing direction downwards, suggesting that declines are likely to continue towards $9,250 (recent support). On the other hand, the MACD shows that buying pressure is not absent per se. For this reason, Bitcoin has a fighting chance to contain losses above $9,400.
Glancing up, the formation of a falling wedge pattern presents a glimmer of hope to the investors that recovery will come eventually. If a break above the wedge comes into the picture and Bitcoin is treated to proper volume, we could see a smooth ride above $9,600 as well as the levels heading to $10,000. In the meantime, sustaining the price above $9,400 is the bulls’ priority.
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