Bitcoin is in retreat after failing to break above the resistance at $10,200 during the weekend session. Besides, the bulls could not keep holding onto the support above $10,000. Instead, a flash drop sent Bitcoin back to $9,700 support on Monday as bulls scattered unexpectedly.
Attempts to keep the price afloat above 9,800 have been thwarted by increased selling activity. The price is currently digging deeper towards the initial support at $9,700. Moreover, the sellers seem to be taking advantage of the bulls after most of them scattered into hibernation following the drop.
BTC/USD daily chart
Possible Head-and-shoulders Pattern
The retreat is painful for the buyers who had recently made progress above $10,000. However, it is apparent that as both the fundamentals and technical stand, advancement upwards is unlikely in the near term. Therefore, a drop to the next support at $9,600 could complete the formation of the pattern’s right shoulder. In so doing, reaction to the pattern will push BTC back into the bullish zone above $10,000 and $10,200 respectively banking on the reversal being supported by the right volume.
Moreover, after most investors sold at a higher level, a majority are waiting to buy lower, preferably at $9,600. Short term technical analysis, however, should that Bitcoin could sustain gains above $9,700 (RSI begins sideways movement) but the buyers will not have the strength to beat the resistance at $9,900 as well as $10,000.
Bitcoin Key Levels
Spot rate: $9,752
Relative change: -98
Percentage change: -1%
Trend: Bearish
Support: $9,700 and $9,600
Resistance: $9,800, $10,000 and $10,200
