- Bitcoin’s correction hits pause at $10,800 as buyers lose traction against the bears.
- Bitcoin long-term technicals suggest a looming upward correction that could test $11,200 level.
Bitcoin is dragging the entire market into indecision after the second rejection from $10,800 in the same week. The coming sessions on Thursday are likely to determine the next direction. However, at the moment we will have to get accustomed to a ranging trend between $10,500 and $10,600.
BTC/USD 4-hour chart
BTC/USD is trading above the 50 Simple Moving Average (SMA) likely to offer support in the event Ethereum breaks the support level at $10,000. The Moving Average Convergence Divergence (MACD) is sliding into a range in the positive region. The visible negative divergence is a key indicator of the existing selling activity.
The Elliot Wave Oscillator displays continuous bullish sessions since September 2. However, the diminishing bullish bars suggest that buyers are gradually losing traction. At the same time, the bears are keen on pushing Bitcoin lower with their first target at $10,400 support and the turning point at $10,000.
BTC/USD daily chart
Considering the performance of BTC in a longer timeframe, the price recently broke out of a descending triangle. The high-volume following the correction the on Monday and Tuesday lost steam short of $10,800. In spite of the correction below $10,600, Bitcoin has managed to stay above the 50-day SMA. In other words, we can expect the moving average to function as a turning point in a similar trend between March and April this year.
The Relative Strength Index in daily timeframe has a bullish tune. Although, the sharp movement north seems to be taking a breather at the average. The RSI displays the same trend that resulted in a breakout in May which means that the current consolidation could end up in gains above $11,000.
Bitcoin Key Technical levels
Spot rate: $10,599
Relative change: +21
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