Bitcoin Price Bulls Pin Hopes on Descending Channel Breakout to $10K
Bitcoin (BTC) price showed a bit of strength by briefly pushing to $9,235 as the daily close occurred but at the time of writing the top-ranked digital asset on CoinMarketCap is trading below the $9,200 resistance.
Crypto market weekly price chart. Source: Coin360
As discussed in the previous analysis by Cointelegraph Markets, the price remains pinned below the 20-MA and the descending trendline from the June 1 high at $10,380. Until Bitcoin can secure a daily close above the $10,400-$10,500 level the price remains at risk of a breakdown to the $8,800 support.
BTC USDT 1-hour chart. Source: TradingView
The 1-hour chart shows today’s rejection occurred slightly above the $9,200 resistance and descending trendline where the price formed a tweezer top before pulling back to $9,165.
On the daily timeframe, the RSI remains below 50 but on the MACD the histogram has flipped from red to pink as the bars begin to shorten and the Bitcoin price is forming higher lows, signaling that selling has begun to decrease. The MACD has also started to flatten and pull closer to the signal line.
BTC USDT daily chart. Source: TradingView
Currently, Bitcoin is below the descending channel trendline and 20-MA but if bulls can manage a high volume spike the price could surge above the high volume VPVR node at $9,600 and in the process flip the $9,200-$9,500 area to support.
Failure to turn $9,400 to support in the short-term is likely to result in a revisit to the $8,900 support where buyers continue to show interest in purchasing.
On the daily timeframe the Bollinger Bands indicator shows that despite the weak volume and waning momentum, compression continues to occur as the trading range tightens, all signals that an increase in volatility is incoming.
Risk-averse traders might consider waiting for a 4-hour or daily close above $9,400 before deciding to open a long or short position. Buying a breakout above the high volume VPVR node at $9,600 could be risky as the price has continuously rejected at $9,800 and $10,000.
Traders looking to go long might wait for a bounce at $8,900 or even a breakdown of this key support level. Meanwhile, bears will likely look to open short positions from $9,400 through $9,600 as the price has seen in this zone.
Bitcoin daily price chart. Source: Coin360
As the Bitcoin price traded sideways, altcoins moved slightly higher. Crypto.com Coin (CRO) rallied 6.62% while Cosmos (ATOM) and Enjin Coin (ENJ) gained 4.20% and 12.23%, respectively.
According to CoinMarketCap, the overall cryptocurrency market cap now stands at $260.5 billion and Bitcoin’s dominance rate is 64.7%.
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