Bitcoin price isn’t still out of the woods just yet despite having moved back past the ten thousand five hundred dollars ($10,500) mark.
The Bitcoin effect is as real as it can be while Ripple (XRP) and Ethereum (ETH) had seen some action in their price with a recent upward move just yesterday. It has been a while since BTC got above the ten thousand five hundred ($10,500) dollars mark.
The bulls tried to push Bitcoin price above ten thousand eight hundred ($10,800) dollars, and they were successful once but only to drop the BTC price over the ten thousand five hundred dollars ($10,500) while a little way above lies the resistance at ten thousand six hundred and fifty dollars ($10,650) mark.
Bitcoin price moved with momentum to ten thousand seven hundred and ninety ($10,790) dollars. The downward move started from there broke both the ten thousand six hundred and fifty dollars ($10,650) support and the twenty-three percent (23.6%) Fibonacci retracement level of $10,790 high to $10,296 low.
The only relief for Bitcoin price was at the support marked ten thousand four hundred and fifty dollars ($10,450). The BTC/USD pair will find support at ten thousand four hundred dollars ($10,400) where a bullish trendline forms and a supposed recovery is due according to the hourly chart.
The sixty-one percent (61.8%) Fibonacci retracement level $10,790 high to $10,296 low has done well to keep Bitcoin price above it. The ten thousand four hundred and fifty dollars ($10,450) support is also the initiation point for a contracting triangle.
Bitcoin price movement: What is next?
A break away from the triangle will either move Bitcoin price upwards or downwards on the graph- we don’t have consolidation patterns in play. Looking at the supports, the first one to encounter is at ten thousand four hundred and fifty dollars ($10,450) followed by a ten thousand four hundred dollars ($10,400) mark.
If there is a break below it then the ten thousand two hundred dollars ($10,200) and the 1.236 Fibonacci extension level from $10,790 high to $10,296 low will act as a support as well before the ten thousand dollars ($10,000) mark get to play the hero for BTC- which is just above the one hundred (100) hourly simple moving average (SMA).
If the price stays above ten thousand four hundred dollars ($10400) mark, then we can expect the rebound to take action and move BTC to ten thousand eight hundred dollars ($10,800) which will act as a key resistance. Above this mark is the eleven thousand dollars ($11,000) resistance.
The moving average convergence/divergence (MACD) is in the bearish territory, and the relative moving strength (RSI) is above fifty (50)