Bitcoin Price Analysis: Primed for a breakout towards $10K amid a descending channel pattern
- Bitcoin range play intact within a descending channel on hourly chart.
- The No.1 coin aiming for a test of the $10000 level.
- BTC bulls await fresh impetus, with RSI flat at the midline.
Bitcoin (BTC/USD), the most favorite crypto asset, attempts another break to the upside after a brief consolidative stint between 9300-9500 levels on Saturday. However, the bulls continue to lack a follow-through bias amid fairly quiet trading. The no. 1 coin appears to gather pace before the next push higher towards 10K mark. The halving process failed to have any impact on the spot, as the impact was already priced-in. Despite the range trade, the price gains nearly 1.50% on the day, trading around 9425, at the time of writing. Bitcoin is poised to settle the week almost -2.30% while enjoying a market capitalization of $173.89 billion.
Technical Overview
BTC/USD 1-hour chart
From a short-term technical perspective, the most widely traded digital asset is primed for a bullish break from the descending channel formation on the hourly chart. The pattern will get validated on clearance of the descending trendline resistance at 9530. The bearish 50-Hourly Simple Moving Average (HMA) coincides at that level.
The channel break out will prompt the buyers to aim for the 10000 psychological level, beyond which the pattern target of 10351 will come into play. Further, backing the bullish case for the spot, the hourly Relative Strength Index (RSI) is trending above the midline (50) at 51.30.
On the flip side, the immediate support is aligned at a horizontal 21-HMA of 9414. Selling interest will intensify on a break below the latter, with the upward sloping 100-HMA at 9314 en route the 200-HMA support, now at 9235.
BTC/USD technical 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.
