- Bitcoin bulls hold above $9,200 support following recovery from $9,100 (weekend support).
- BTC/USD bulls are looking forward to lift-off from the triangle resistance with eyes glued on $10,000.
- Consolidation could carry the day before the breakout as highlighted by the RSI and MACD.
Bitcoin price drab trading action continues as we enter a new week. The weekend session was characterized by a minor bullish action with BTC/USD stepping above $9,200. Note that, the largest cryptocurrency dived to $9,050 towards the end of last week. The selloff was not unique to Bitcoin but altcoins such as Stellar, Chainlink and Cardano suffered the most because they had rallied impressively in the first week of July.
BTC/USD recovery over the weekend lost steam short of $9,250. This gave the bears ammunition as they forced Bitcoin into another drop under $9,200. Support was, however, established at $9,100. The recovery that ensued pulled Bitcoin to the prevailing market value at $9,206.
For now, consolidation is likely to take over as highlighted by both the RSI and the MACD. The RSI is holding tightly onto 50 (average) while the MACD is motionless at the midline. Support at $9,200 is vital for the bulls as they plot an attack on the resistances at $9,250 and $9,300 respectively.
BTC/USD daily chart
The formation of a falling triangle pattern hints that a breakout is around the corner. Trading above the triangle resistance would easily catapult Bitcoin past the 50-day SMA and with the proper volume send it towards the coveted $10,000. On the other hand, it is also essential that the triangle support is protected at all costs because if shattered, Bitcoin could spiral to the supports at $8,500 and $8,000.
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.