Bitcoin price analysis: Bearish pennant breakdown targets $ 10,600
|- Bitcoin sees a bearish pennant breakdown on hourly chart.
- BTC bears to extend control below a break of 11k mark.
Bitcoin (BTC/USD), the most widely traded cryptocurrency, witnessed a fresh leg lower in Sunday’s trading, having broken the overnight downside consolidative phase, as the technical set up remains in favor of the bears. The No. 1 coin’s trading range stalled its recovery attempts at the recent support-turned-resistance levels placed near 11,400 region. At the press time, the rates are seen reversing a quick dip to 11,100 lows, still down nearly 5% over the last 24 hours, and with a market capitalization of $ 201.67 billion.
From a technical perspective, the coin has displayed a bearish pennant breakdown on the hourly chart, suggesting the continuation of the recent downtrend. Adding to the bearish bias, the prices trade below all the major Hourly Simple Moving Averages (HMA) while the Relative Strength Index (RSI) on 1-hour charts has sharply dipped below the 50 level. Therefore, the next downside targets are aligned at 11,000/ 10,900 levels (round number/ the horizontal support). A break below the last, a test of the pattern target near 10,600 region becomes inevitable.
Meanwhile, any minor recoveries are likely to face the immediate ascending trendline resistance at 11,275 levels. Should the recovery gain momentum above the last and breakthrough the 11,400 level, the pattern will get invalidated. A bullish reversal, thereafter, could confront the next upward sloping 200-HMA at 11,496.
BTC/USD 1-hour chart
BTC/USD Levels to watch
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