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Bitcoin Rally Stall at $ 10K but Dip buyers should see these levels



With only two days left until blockchain reward Bitcoin (BTC) reached $ 10,000 for the second time in 24 hours. Data from Cointelegraph Markets and CoinMarketCap shows that the largest digital asset through market value is struggling to stay above the $ 10K handle.

Crypto market weekly price. Source: Coin360

A few hours ago, the price lost momentum and the decline in purchasing volume broke the pattern with higher low levels, causing Bitcoin to fall below the pennant seen in the hour and 4 hour frames.

BTC USDT 1 hour chart. Source: TradingView

After Thursday’s 11.81% gathering, some traders expected the price to decline to test lower support. But since April 29, traders have been buying at every dip. The price also seems to be supported by a high volume VPVR node for $ 9,925, and on April 8 the price bounced directly from that node.

BTC USDT 4 hour chart. Source: TradingView

Despite this, there are signs that Bitcoin needs an excerpt. In the shorter timeframes, purchasing volume has declined significantly, RSI has also dropped from 77 to 63, and speed on the MACD histogram decreases as the MACD pulls below the signal line as the price remains between $ 9,750 and $ 9,900.

$ 9,300 BTC price incoming?

Since April 29, Bitcoin price has increased by 30%. This also means that the price since Black Thursday crashed more than 160%. Thus, a return to test lower support would be perfectly natural, and if not for the coming half, traders who bought for $ 3,750 and $ 7,600 would already itch to make a profit.

In the event of a fall below $ 9,800, the $ 9,400- $ 9,300 zone is where the price is expected to find support. The $ 9,400 level is in line with 20-MA and the long-term falling trend line.

At the same time, $ 9,300 is lined up with a high volume node on VPVR. If $ 9,300 does not provide support, traders will have their eyes focused on $ 9,000, which is close to the 78.6% Fibonacci retracement.

Crypto Fear & Greed Index. Source: Alternative.me

Despite the short-term opportunity for a $ 9K discount, Bitcoin sees price measures encouraging halving, but the Crypto Fear & Greed Index shows investors that the majority of traders are feeling pretty bullish now.

While this is a strong pivot from where the index was two weeks ago, many traders see sentiment metrics as a counter-indicator, which means that the majority of investors feel that savvy traders are buying and, conversely, when the majority of traders feel bullish.

Looking forward

BTC USDT daily charts. Source: TradingView

At present, risky traders may consider waiting for a breakout over $ 10,600, as the daily chart shows that Bitcoin is ready to target $ 11,500 above this level.

More aggressive traders will look at the 1-hour chart to see if the price can push above 20-MA and break the pennant to $ 9,956.

Alternatively, traders can also wait and see if the price drops below $ 9,750 to resume support within $ 9,300- $ 9,400.

The views and opinions expressed here are opinions only Author and does not necessarily reflect Cointelegraph’s views. Every investment and trade is at risk. You should do your own research when making a decision.




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