Bitcoin (BTC) Consolidates, Bounces To Key $ 10,500 Level
After a sharp and rapid fall last week, Bitcoin has stabilized and experienced several days of consolidation between $ 10,000 and $ 10,500. What could he have in store for us in the next few days?
Despite a sharp drop last week, Bitcoin (BTC) still manages to hold above many important supports.
First, we will note the rebound of Bitcoin on the level of 10,000 $. Much more than a symbolic number, the level of $ 10,000 is a major technical support that can be found on a monthly, weekly or daily basis. No wonder then that the price is based on it to bounce back.
Bitcoin on its supports in WeeklyBitcoin on its supports in Weekly
On a weekly basis, we will also note a rebound on the RSI 53 level. This level is extremely interesting on Bitcoin, because it is a real pivot level .
During the previous speculative bubble, the departure of the bullrun was marked by the overcoming of this resistance. We will especially notice that afterwards, for more than two and a half years, the RSI Weekly never went back below!
The RSI level 53 is therefore a key support level for Bitcoin. It will imperatively be necessary to hold it in the weeks to come and to accentuate the rebound underway. Otherwise, we will have to expect hectic weeks and postpone the hypothesis of a departure of bullrun .
Bitcoin Rush bounces back on its supports (Daily)Bitcoin bounces back on its supports (Daily)
In Daily, we find a double level of support supporting the rebound of Bitcoin. First, the horizontal level of $ 10,000 , also marking the high of the large range dating from the start of this summer. Second, the upward trend slant that supported the price during this same consolidation is again in contact with the price.
For the moment, these two supports have played their role perfectly, hence the current rebound in Bitcoin
Unfortunately, this rejection of the $ 10,000 can only be seen as a simple rebound. Indeed, if on weekly and monthly scales the trend remains bullish, this is not the case in Daily.
Since breaking down the consolidation zone between $ 11,000 and $ 12,100, Bitcoin has returned to a daily downtrend.
Even though the price practically fetched the theoretical target of the reversal pattern, that does not automatically mean that the decline is over.
Bitcoin trending downBitcoin trending down
Following the validated shoulder-head-shoulder and the $ 11,000 breakout , the price is in a downtrend. For the moment, nothing calls into question this downward trend. This will unfortunately be the case as long as there is no more evidence in favor of a bullish reversal, such as a reversal pattern, a crossing of moving averages or a rally on other indicators.
Today everything continues to point down on the daily scale. Momentum indicators support this downtrend, with the RSI moving for example in a bearish channel and showing no divergence or potential signs of reversal.
We also note that the price is stumbling on the major resistance of $ 10,500 , reinforced by the bottom of the Ichimoku cloud.
In short: Bitcoin is still in a downtrend on a Daily, and despite the many supports acting on the price, it is likely to see a further decline in the coming days.