Bitcoin price managed to hold the critical ascending channel support despite failure to break resistance at $9,300 and $9,400.
BTC/USD is ready for consolidation, supported by the sidelong movements of the RSI and the MACD.
Bitcoin price continues to battle selling pressure following the recent rejection from levels around $9,800. Recovery from last week’s dip under $9,800 has been an uphill task with resistances at $9,300 and $9,400 remaining intact and stubborn. At the moment, the largest cryptocurrency is trading at $9,130 amid a building bullish trend. Since the volatility is expanding, more upward actions could be experienced in the course of the trading sessions on Monday.
The Ascending Channel
Bitcoin is trading slightly above critical ascending channel support. The upward slope of the channel is not sharp but has been consistent since the beginning of May. As long as the channel support remains intact, Bitcoin bulls will have a fighting chance for $10,000. However, it will be bad news for the channel support to give in as it could hasten Bitcoin’s drop towards $8,000.
BTC/USD 4-hour chart
From a technical perspective, the price at the moment is neither in the hands of the bulls or the bears. Buying and selling pressure seem to be canceling out especially with the Relative Strength Index (RSI) moving sidelong at 45. To sustain the uptrend, at least past $9,200 resistance, the indicator must correct above 50 (average). Traders can also watch the downward movements of the RSI to be aware of Bitcoin’s potential drop under $9,000.
The MACD is also emphasizing on consolidation but also clear on the fact that sellers have an upper hand. This is seen by the slightly visible bearish divergence from the MACD. Motion around the midline would continue to support sideways price action. However, an increase in divergence could signal more sellers to join the market in order to force the price under $9,000 and towards $8,000.
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 email@example.com