- Bitcoin holds above $9,600, short term support amid consolidation.
- The sideways trend is empathized by the technical picture; both the MACD and the RSI.
Bitcoin is nearing the end of the consolidation period after the efforts to rise above $10,000 were nullified last weekend. Last week’s recovery to highs above $10,400 was incredible but short-lived mainly because it did not attract the desired volume. Of course, support above $10,000 was unsustainable, leading to losses. Support has been established above $9,600 and BTC/USD teetering at $9,675. On the upside, Bitcoin bulls are facing selling pressure at $9,700 while the next hurdle lies with $9,800.
The technical picture shows Bitcoin in consolidation. Both the RSI and the MACD are horizontal at 54 and 300 respectively. As long as the sideways trending continues, this consolidation could last longer. Moreover, volatility and trading volume are low. The majority of the buyers are waiting to buy low; preferably at $9,400 and $9,300 (just like last week). Fresh demand is the only way to detangle BTC from the bearish trap.
In case losses continue towards $9,000, support is envisioned at the ascending trendline, $9,400 and $9,200. On the upside, a break above $10,000 if supported with the right volume, could sustain towards the coveted $11,000. After all, Bitcoin has already traded above $10,500 in February. The wide gap between the 50 SMA and the 100 SMA displays a stronger bullish front.
BTC/USD daily chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.