Bitcoin price breakouts from a minor short term double-bottom pattern but fails to rise above $10,400 resistance.
Bitcoin could be on its way to $12,000 as long as the range resistance at $10,600 is broken.
Bitcoin price has been trading in a narrow range between the recently established support at $9,900 and the resistance at $10,600. The drab trading is taking place after last week’s sharp plunge from highs above $12,000. The losses were not unique to the flagship cryptocurrency because both major and minor cryptoassets lost key positions and explored lower levels.
BTC/USD 1-hour chart
At the time of writing, Bitcoin is trading at $10,336. The shallow upswing is taking place after a subtle double-bottom pattern in the hourly range. The initial bottom was precisely formed during BTC’s breakdown to levels under $10,000 where it found support at $9,900. The second bottom was formed on September 7, as BTC explored the levels under $10,000 again. The recovery from the pattern appears to be losing momentum in spite of the pattern.
Bitcoin Technical Analysis
Bitcoin is facing acute resistance at $10,400, $10,500 and $10,600. Most analysts believe that once these three hurdles are behind the flagship cryptocurrency, the price would easily elevate to areas higher than $11,000.
Meanwhile, the Relative Strength Index (RSI) in the daily range seems to be nurturing an uptrend following a reversal from the support at 30. As long as the RSI’s upward movement stays intact, Bitcoin bulls will continue to throw jabs at the above-mentioned resistance zones.
On the downside, support is envisaged at $10,200, $10,000 and $9,900. In addition, the 100 Simple Moving Average (SMA) at $9,689.68 is in line to prevent further losses that may be eyeing $9,000, in case of a reversal from the current price level.
The formation of a bearish pennant pattern warns investors that it might not be the right time to buy the deep hence a call for caution. The longer Bitcoin stays under $10,600, the stronger the bears get. If the pattern’s support is shattered, BTC could be on a path to $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