- The mundane trading on Monday turned out to be a bear trap as the price plummeted below $10,000.
- Technical levels suggest a lower consolidation level for Bitcoin.
Bitcoin continued to struggle with the bear pressure on the market mid though the week’s trading. The mundane trading on Monday turned out to be a bear trap as pressure has been mounting on key support areas.
BTC/USD besides breaking $10,000 level support has explored the lows close to $9,500. The move sends jitters among investors who are afraid that Bitcoin will fall to $9,000 (July lows). At press time, the price has recovered to the current market value at $9,757. The immediate resistance is at $9,800 but the bulls have not moved their eyes from $10,000.
The price is below the moving averages including the 21 Exponential Moving Average (EMA) currently limiting movement at $9,840. The double cross of the 50 Simple Moving Average (SMA) 1-h under the longer term 100 SMA suggests a lower consolidation level for Bitcoin.
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Other technicals also emphasize recovery will be an uphill task. The Moving Average Convergence Divergence has been stuck in the negative region since July 31. The ranging movement indicates sideways trading for Bitcoin probably with the upside capped under $9,800. Support has been formed at $9,600 and 9,567 (weekly lows) but $9,000 is the primary support area.
BTC/USD 1-h chart