Bitcoin Price Analysis: BTC/USD Majestically Breaks $10,000 But Double-Top Pattern Could Sabotage The Bulls

Bitcoin
  • Bitcoin price impressively takes down the resistance at $10,000 and $10,400.
  • BTC/USD retreat from the weekly highs puts $10,000 support in grave danger.

Bitcoin price made it above the psychological resistance at $10,000. The recovery came after Bitcoin sunk to lows marginally below $9,400 on Sunday. The recovery staged on Monday was more or less a technical breakout that was lucky enough to find the right volume to sustain gains.

The majestic rally towards the end of the trading on Monday did not stop above $10,000 but the price action continued to levels above $10,400 where a new monthly high was formed at $10,450. Unfortunately, the impressive momentum began to lose steam. At the time of writing, BTC is trading 1.58% on the day after correcting lower from $10,206 (Tuesday opening value). The existing trend is bearish while the volatility expands to show that more downward action is likely to come into the picture.

Bitcoin price can barely hold above $10,000 probably due to the impact of the double-top pattern. To mitigate the negative effects of the pattern, support above $10,000 must be established and guarded at all costs. This way, buyers will have time to take a breather and gather the strength to push for gains above $10,200 and $10,500 respectively.

BTC/USD daily chart

BTC/USD orice chart
BTC/USD price chart by Tradingview

From a technical point of view, the trend is in the hands of the sellers. The RSI is retreating even though it had not reached the overbought region. As long as the downward trend continues, keeping Bitcoin above $10,000 will be a daunting task. In this case, it is best we look at possible support areas, starting with $10,000, $9,400, the trendline, and the 50-day SMA.

Bitcoin Intraday Levels

Spot rate: $10,066

Relative change: 140

Percentage change: -1.58%

Trend: Bearish

Volatility: Expanding



from Coingape https://coingape.com/bitcoin-price-analysis-btc-usd-majestically-breaks-10000-double-top-pattern-sabotage-bulls/

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