BTC Bears Tighten The Grip, Bulls Ready To Strike Back

Bitcoin attempted a recovery above $10,500 on Sunday, September 13, but failed to hold the ground. At the time of writing. The pioneer digital currency is changing hands at $10,350, mostly unchanged since the start of the day. Moreover, the coin has been oscillating in a tight range for over a week now amid the high indecision level on the market. While Bitcoin HODLers sit tight and wait for the prices to resume the upside momentum, speculative traders might feel frustrated and start looking for clues to understand what's going on and when moon again.

Let's have a closer look at the technical picture to see if the breakthrough is coming. 

BTC/USD daily chart

(Click on image to enlarge)

On a daily chart, BTC/USD rebounded from the upper boundary of the recent consolidation range at $10,500. The chances are that the price will retest the channel support before the bulls launch another recovery attempt. Bitcoin dived below $10,000 on numerous occasions during the previous wee; however, each time, a thick layer of buy orders located around that area pushed it back. 

Meanwhile, BTC positioning data shows that nearly 1.4 million addresses with over 750,000 coins have their breakeven point on the approach to $10,000. This barrier is followed by another pack of 700k addresses with the breakeven in the range from $10,000 to $9,700. Mist likely, bears will have a hard time making their way through these thick protective layers of protective.  However, if they succeed, the sell-off may gain traction with the next focus on $9,200-$9,000, which coincides with the longer-term correction target, as explained in detail in our weekly forecast. The daily SMA200 and weekly SMA50 add credibility to this support area. 

Bitcoin's In/Out of the Money data

(Click on image to enlarge)

Source: Intotheblock

If we zoom in to the 4-hour timeframe, the price is supported by SMA50 at $10,270. This local barrier separates BTC from a decline to the lower line of the sideways channel. The series of Dojis and candles with small bodies confirm the market's indecisiveness, which means we may stay in the current range a little bit longer. Also, the market positioning implies that a wall of supply in the area of $10,400-$10,600 may slow down the recovery. However, once it is out of the way, the upside momentum is likely to gain traction with the next focus on the psychological barrier of $11,000, followed by the 4-hour SMA200 at $11,200. 

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Disclosure: Information on this article contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational ...

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