- Bitcoin renews the bullish momentum as bulls reclaim the support at $9,700.
- There is a possibility of Bitcoin sliding back to $9,500 especially if bulls fail to push past $10,000 in the near term.
Bitcoin made a shocking return to lows around $9,500 further demoralizing the bulls. Various support areas shrunk in the presence of the bears. The losses that begun over the weekend extended to the new week, jeopardizing the progress made above $10,000 to highs above $10,500.
At the time of writing, Bitcoin has made an impressive recovery above $9,700. It is proper to say that BTC /USD is back in the hands of the bulls. The target from the market value of $9,750 is $9,800. To sustain gains above $10,000, the sellers camping at the 50% Fibonacci level from the last drop $13,877.65 to a low of $6,410 must be dispersed.
BTC/USD daily chart
The Rising Wedge Pattern
The formation of a rising wedge pattern spells doom for Bitcoin as long as it stays under $10,000. Therefore, to avert a possible plunge back tom levels under $9,500, Bitcoin bulls have no choice but to keep the focus on $10,500 but work hard to pull BTC above $10,000.
According to technical analysis, the price is not entirely in the hands of the bulls. The RSI, for instance, has been able to hold above the average. However, recovery towards 70, continues to be limited. The momentum indicator shows the downward movement had slowed down but movement north is still lacking strength. Therefore, the impending recovery is likely to take longer than many might expect.