Bitcoin Showing Bearish Signs, But Still Above Key Supports
Bitcoin, News

Bitcoin Showing Bearish Signs, But Still Above Key Supports

Yesterday, BTC retested the $9,950-$10,000 resistance zone but it failed again to continue higher. The BTC price recorded a daily high at $9,945 and started a downside correction. During the decline, it broke the resistances at $9,800 and $9,700 levels. The downtrend was such that the price even spiked below the 50% Fib retracement level of the rise from the $9,252 low to $9,945 high.

Nonetheless, BTC is now finding a strong buying interest above the $9,500 level and the 100 hourly simple moving average (SMA). The 61.8% Fib retracement level of the rise from the $9,252 low to $9,945 high is also serving as a strong support. These three factors together could prevent a downside break and the price might begin a fresh increase towards $10,000.

It appears there is a key contracting triangle forming on the BTC/USD hourly chat, with resistance near $9,700. A clear break above the triangle resistance could lead the price to start a fresh increase in the near term above $9,750. The hourly MACD for the BTC/USD pair is currently moving in the bearish zone, with negative signs, whiles its RSI (Relative Strength Index) is now just below the 50 level.

On the upside, the first major resistance is close to the $9,780 and $9,800. The second major resistance is still near the $9,950-$10,000 zone, above which there is the likelihood of a sustained uptrend in the coming days.

On the downside, if the BTC price fails to climb higher above $9,700 and $9,800, it could spark a downside move. A clear break below the triangle support, $9,500, and the 100 hourly SMA might pave way for further losses. The next major support is near the $9,400 level, below which there are higher chances to continue lower towards the $9,250 support level. Any further losses may perhaps push the price towards the $8,500 level.

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Dacosta Osei-Tutu, a first degree holder in Nursing, who couples his Nursing career with blockchain blogging, has a great passion for the blockchain technology and aims to play a vital role in applying this revolutionary technology to disrupt the healthcare system in Africa.