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)