Bitcoin Prices Struggle to Break 10,000 After Weak Bounce
Bitcoin prices continue to struggle to break the 10,000 mark after Wednesday’s steep crash which sent the BTCUSD down by 7.5% in a 45-minute selling frenzy. BTCUSD was able to find support at a critical Fibonacci price level, but the support bounce has proven too weak to take the BTCUSD above 10,000.
This scenario is playing out on the charts as Bitcoin-related keep the newswires abuzz. From exchange collapses (TradeSatoshi) to a suspected drug dealer in Ireland losing private keys to wallets that hold nearly 6,000 BTC, there seems to be no shortage of headlines which make for exciting reading but are hardly impacting Bitcoin prices.
In the last three months, weekend trading has produced some surprises; perhaps this weekend could be one of them if history is anything to go by.
The technical setups on the daily charts make for an exciting study of chart patterns; one which could still provide hope for traders who are HODLing BTC. Today’s support bounce completes point D in the search for a potential descending channel pattern of a small size. This channel has now been defined by two resistance points and two support points.
The critical question is whether the support bounce will have enough momentum to retest the upper boundary of the descending channel. The bounce area also coincides with a rebound from the lower boundary of the ascending channel that has encased price action since the start of the year, with three chart patterns being found within its borders.
Within the sizeable ascending channel, we can assume that price will attempt to get to the opposing upper boundary, which is very close to the 11,000 price level. Attempts by Bitcoin prices to achieve this feat must be preceded by definitive breaks of the 9939 resistance level and the upper border of the small descending channel, which is found around the 10,290 price area.
Attainment of the 10,930 resistance will mark the first time since early September 2019 that price has got to this level. This level must give way for the next target at 11,500 to become relevant.
On the flip side, failure of the BTCUSD price action to surpass the 9,939 resistance could open the door for further downside towards the 38.2% Fibonacci retracement of 9485. Additional support lies at 8874.49 and 8550.12.