Bitcoin Stalls at Just Above $10,000: Poised for A Major Move
Bitcoin continues to trade at just above the $10,000 in its pairing with the US Dollar, as it has been doing for several days now. The daily chart reveals a series of doji candles which have been trading more or less between $10,150 and $10,200 in the last few days.
This price level is close to the descending trendline resistance which has capped the highs of price activity from June 26 till date. The Fibonacci retracement levels traced from the Nov 2017 swing high to the December 2018 swing low remain intact. The descending resistance trendline and the horizontal support line at the 38.2% Fibonacci level, form a descending triangle.
The weekly chart shows that last week’s price action ended in a doji, but this week has seen another doji with an even narrower price range, sitting right at the descending trendline resistance.
Outlook for Bitcoin
The expectation is for BTC/USD to make a major move to the south in the long-term; a move which could take it below the $7000 mark, where the 23.6% Fibonacci retracement level resides.
In the short-term, we would expect price to target the $9,420 price level (38.2% Fibonacci level; lower border of triangle).
A move above the current levels would take BTC to 10,800 where it is expected to find horizontal resistance. It is only a price move above $13,300 (June 27 high) that would invalidate the descending triangle and hence the bearish sentiment on BTC/USD.
Many altcoins are already pushing upwards in anticipation of a big move south in BTC/USD. Time will show whether the sentiment will be played out in full by sellers or whether some developments in the fundamental realm will push BTC upwards and away from its technical boundaries.
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