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Fan Yang

Bitcoin (BTC/USD) Maintaining a Bearish Outlook in the Short-term

A couple of sessions ago, we noted that $10,000 would be a key resistance while $8000 would be a key support for Bitcoin (BTC/USD). $BTCUSD approached $10,000 but retreated before tagging it. This shows a loss in confidence and could signal further bearish outlook at least in the short-term.

BTC/USD 4H Chart

(click to enlarge)

  • The 4H chart shows that price held under the cluster of moving averages. This was a bearish signal.
  • The RSI also held under 60. The fact it came down below 30 and is holding under 60 suggests bearish momentum is still in play.
  • The thing is, we can see that price is simply becoming more choppy. 
  • Speculators are becoming more tentative, which means at one point, price will likely uncoil.
  • I think we should readjust key resistance.
  • $10,000 will still be key in that if price can't push above it, the market will lose more confidence, and the next dip might be lower than $8800 and $8380. It might test $8000.
  • However, even if price pushes above $10,000, Bitcoin is not out of the woods. The resistance goes up to around $10,400, which is an area of common supports and resistance.
  • Here's the thing, if price retreats but then holds above $9000, the market can continue to gain confidence and at least push bitcoin to test the $11750 resistance area.

From CoinPowR