- Bitcoin has been narrowing towards $10,000 under descending resistance.
- A bearish triangle breakdown could send Bitcoin in the range of $8270 – $8300.
Bitcoin is miraculously staying above $10,000 following the drop to levels close to $9,856. However, recovery from the low failed to break $10,300 hurdle. Diminishing selling pressure hit a snag around $10,274 leaving a gap currently being explored by the bulls. The price at press time is hovering around $10,100. Besides, the lethargic movement is connected to the decreasing volume in the last few days.
The 4-hour chart shows Bitcoin narrowing towards $10,000 for three months in a row. The price become allergic to $11,000 but it has a higher affinity to a lower high pattern trend. The formation of a bearish triangle is likely to send Bitcoin further down. Especially with $10,000 support having been broken, the only support that needs to give in before a massive to comes is $9,800.
BTC/USD 4-hour chart
The descending resistance also shows that Bitcoin could continue to dump and until we find a viable bottom (key support). BillCharison, an analyst with Tradingview predicts that Bitcoin will continue with the dumping trend it started towards the end of June.
-ldquo;If the price dumps lower than the bottom of the triangle, then we need to wait for another bottom in the range of $8270 – $8300, because it is one of the strongest support now. In the case of the breakdown, this zone is perfect for opening a LONG position.-rdquo;
A short-term bullish trend could help avert testing of $9,800. The Relative Strength Index (RSI) and the Stochastic RSI both have tested the oversold levels at 30. A slightly visible divergence suggests that buying action is coming back. If the indicators can manage to pull towards the average, the resistance to watch will be $10,600 and $10,800.
Bitcoin Key Technical Levels
Spot rate: $10,075
Relative Change: -21
Trend: Slightly bullish
RSI: Slightly bullish above 30
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