Bitcoin price bounces off newly established support at $9,200; eyes glued on $9,400 and $9,600.
BTC/USD technical picture is improving ahead of a potential falling wedge pattern breakout.
Bitcoin price has in the last seven days managed to hold above $9,000. However, the upside has been limited under $9,600, making $10,000 seem like a mirage for investors. Last week Monday saw Bitcoin plunge below $9,000, to the extent of testing the area at $8,900. The recovery that took place failed to gather enough momentum to sustain gains above $9,600.
The consolidation witnessed in the last seven days established support above $9,300. Glancing higher, $9,500 is an area with known bearish congestion. BTC/USD is currently trading below $9,400. There is a bullish momentum that is building and aiming for a breakout above $9,400.
Falling Wedge Pattern Breakout In The Offing
BTC/USD price has also stepped above the 38.2% Fibonacci level taken between the last swing of $10,435 to a swing low of $8,635. Standing in the way of a falling wedge pattern breakout is the 50 SMA on the 4-hour chart. However, if the bulls continue with the current push for a position above $9,400, then a wedge breakout is likely to come into the picture.
BTC/USD 4-hour chart
Consequently, the Relative Strength Index (RSI) momentum shows that Bitcoin is in the hands of the bulls. The RSI is moving towards the overbought region while the Moving Average Divergence Convergence (MACD) puts emphasis on the building bullish momentum. As long as the technical picture continues to strengthen, $10,000 could be achievable for Bitcoin in the near term.
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