Bitcoin market update: BTC/USD hangs in the balance above $10,000; what next?

  • Overwhelming sell-offs this week explored levels closer to the rock-solid support at $9,500.
  • Bitcoin price has the potential to correct higher upon the clearing specific barriers.

Bitcoin continues to battle increasing selling pressure despite the short-lived surge on Thursday. Since Monday, the bears have been pressing down on key support areas including $10,000 and $9,800. The overwhelming sell-offs explored levels closer to the rock-solid support at $9,500. However, the bulls’ endurance through the selling pressure has given way to a persuasive thrust above $10,000.

At press time, Bitcoin price is trading at $10,085. Its immediate upside is capped by the 38.2% Fib resistance level taken between the last drop from $11,129 to a low of $9,521. The bulls tried and failed to break above both the 100 Simple Moving Average (SMA) 2-hour and the 50 SMA 2-hour.

For now, the price is tentatively bullish as observed with the Moving Average Convergence Divergence (MACD). The signal line is almost crossing into the positive region. In addition to that the increasing positive divergence suggests impending boost for the bulls in the short-term. The Relative Strength Index (RSI) in the same 2-hour range proposes that sideways trading will take center stage in the near-term as it ranges at 56.

Therefore, Bitcoin price has the potential to correct higher but specific barriers at the 38.2% Fib level and the moving averages must be cleared first.

BTC/USD 2-hour chart

 

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