Bitcoin attempts a dead cat bounce amid a descending channel
- Bitcoin’s selling bias persists, as mid-9800s tested on Sunday.
- A brief bounce cannot be ruled in the day ahead while below $ 10k.
Bitcoin (BTC/USD), the most dominantly traded cryptocurrency, is seen attempting minor recoveries on the 9900 handle, having extended the recent declines to 9,850.65 lows, in the wake of a symmetrical triangle breakdown on the hourly sticks seen on Saturday.
The bulls are seen trying to fight back control, but the downside bias remains intact in the near-term, mainly chart-based driven. Meanwhile, the weekend so far sees slow trading, as the rates currently trade near 9,920 region, down nearly 2% over the last 24 hours, and with a market capitalization receding to $ 178.98 billion.
Technically, given that the first coin has almost tested the symmetrical triangle pattern target ahead of the 9,800 mark early-Sunday, the price attempts a comeback, having bounced off the descending channel trendline support. A tug of war between the bulls and bears continue, with the latest uptick likely to get sold-off at the 100-hourly Simple Moving Average (HMA), placed just shy of the 10k mark, as it continues to cap the upside attempts since Saturday’s early dealings. Meanwhile, the hourly Relative Strength Index (RSI) sees an upturn from the oversold territory, backing the case for a temporary bounce.
Should the No. 1 coin manage to break above the 100-HMA solid resistance, the recovery will gain momentum towards the descending channel trendline resistance now located at 10,048, beyond which the 10,100 level – a confluence of the 50 and 100-HMA, will be the level to beat for the bulls. Despite the latest bounce, the bias still remains bearish, with a sustained move below 9,880 levels to expose the three-day lows of 9,850.65 once again. Selling interest is likely to intensify below the last, paving the way for a test of the horizontal support aligned near 9,825 region.
BTC/USD 1-hour chart
BTC/USD Levels to watch
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
