Bitcoin price has failed to breach either of the two resistance lines – the bottom line at $10,000 and the top line at $13,000.
The cryptocurrency did manage to surge 10 per cent yesterday, but then it fell by 10 per cent in the same 24 hour period thereby wiping out any gains in the period. While the crypto is not able to breach the $13,000 mark, it hasn’t gone below the $10,000 mark either. Bitcoin price appears to be forming a short-term reversal pattern on the 1-hour
Chances are that bitcoin traders and investors will continue selling off their coins considering there hasn’t been bull sessions and the market tends to present a more bearish outlook.
Dollar weakness came in play for yet another day, allowing BTC/USD to take advantage. As it turned out, Treasury Secretary Mnuchin’s remarks on how a weak dollar could be good for trade were interpreted as jawboning. Besides, data from the US turned out weaker than expected and cast more doubts on the Fed’s tightening timeline for the year.
In addition, the gap between the two moving averages is widening to signal stronger bearish momentum. These dynamic inflection points are close to the neckline, adding to its strength as a ceiling. Still, if an upside breakout occurs, bitcoin price could be poised to climb by $3,000 or the same height as the chart pattern.
Stochastic is moving up to show that buyers have the upper hand for now, but the oscillator is nearing overbought levels to signal rally exhaustion. RSI is also pointing north so bitcoin price might follow suit, but the climb could pause once it also hits overbought conditions.
As for bitcoin price itself, bulls appear to be defending these key support zones well for now but traders are still holding out for stronger catalysts that could sustain the climb. It doesn’t help that more and more reports on the crypto crash are circulating the longer the selloff persists, drawing more sellers in the mix.