Bitcoin tried and failed to break the resistance at $10,200 during the trading on Thursday. The tussle to secure formidable support also suffered great blows as $10,000 failed to hold. Bitcoin commenced another painful downtrend right where it began the recovery this week.
- Bitcoin is pushing for recovery but it is strongly opposed at $9,800.
- Bitcoin could make a compelling move towards $10,000 persuaded by strong technicals.
The bears got overwhelmingly strong after retracing below the 100 Simple Moving Average (SMA) 1-hour. This forced Bitcoin against key levels starting with the 50 SMA 1-hour at $9,861. The price pressed sturdily on the key support area we discussed in yesterday’s technical analysis at $9.400 – $9,600. On forming a low at $9,658 (on Coinbase), Bitcoin pushed for a shallow recovery that was strongly opposed at $9.770.
BTC/USD 1-hour chart
At press time, Bitcoin teeters at $9,707 amid equal bear and bullish pressure. The indecision comes after the slump from highs close to $10,200. The buyers are not confident in the recovery if anything they are exhausted. If a breakout above $10,000 delays Bitcoin price disintegration towards $9,000 is in the offing.
Technically speaking, the trend is neither bearish nor bullish as observed from the Moving Average Convergence Divergence (MACD) currently leveling slightly below the mean line (0.000). The zero divergences mean that movement to either side is solely depending on demand-supply.
Traders can look out for the narrowing gap between the 50 SMA and the 100 SMA. If 50 SMA manages to cross above the longer-term 100 SMA Bitcoin could make a compelling move towards $10,000. Before, that the intense resistance at $9,800 must be cleared for buyers to thrust BTC further up.
Bitcoin Key Technical Levels
Support Areas: $9,600, $9,400 and $9,000.
Resistance: $9,800, $10,000, $10,200.
MACD 1-hour chart: Cross into the positive will encourage bulls to stake more
1- Do not invest in every ICO – most of them are a scam.
2- Crypto is a heavily manipulated commodity and the price can change at any moment.
3- The creation cost of a coin represents the “wholesale” price – It is always better to buy when the price is close to the creation cost.
4- Crypto has a natural cash flow that dictates the selling pressure. Like, 1800 bitcoins are mine each day so 1800 bitcoin must be bought at the current price (“means market needs new $18 millions of investment every day if the price is $10,000 to maintain the current price“).
5- Patience and timing are key to making a profit:
Buy, when the price is close to the creation cost.
Sell, when the price is way high off the creation cost.