On the downside, the flagship cryptocurrency is protected at $10,600. In other words, BTC is lock-step trading in the range between $10,600 and $10,900. Meanwhile, the digital asset is valued at $10,805 at the time of writing. The Relative Strength Index (RSI) in the daily range is leveling at the midline, particularly emphasizing the sideways trading.
At the moment, it is not clear which direction BTC will take following the return and the end of the uncertainty. At the same time, the formation of a short term ascending wedge pattern in the same daily range highlights the possibility of a downtrend that could eventually send Bitcoin back to lows around $10,000.
BTC/USD daily chart
Various support zones will try to absorb the selling pressure including $10,600, $10,400 and $10,200. Bitcoin could stand to gain more with the slide to $10,000, giving investors another chance to buy the dip. The volume that would be created following the deep might give the bellwether cryptocurrency a boost past $11,000.
Bitcoin IOMAP model
Note that the bearish outlook could be invalidated altogether based on on-chain metrics released by IntoTheBlock. The IOMAP model shows that Bitcoin has a smoother ride to $11,000 as opposed to a breakdown. The most significant resistance lies in the zone between $11,450 and $11,800. Previously, nearly 980,000 addresses bought 761,000 BTC in the range. On the downside, BTC is seating on a region with immense support; from $10,500 to $10,800. Here, roughly 1.8 million addresses purchased 1.4 million BTC.
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