Bitcoin Price Zooms Past $10,200 But Are We Really Done With The Downside?

Bitcoin bullish scenario is back following the return above $10,000. For several days after the rejection from $10,500, Bitcoin bulls got battered in the confines of a descending channel. Losses extended to lows around $9,000 before giving way to a bullish reversal mainly on Monday and Tuesday this week.

The American session saw the bulls intensify their influence on the price. The uptrend mainly boosted by the impact of breaking out of a falling channel as well as the seller congestion zone at $9,800. The bullish action did not, however, stall above $10,000. The bulls pulled the price above $10,200 for the first time since Saturday. A weekly high has been established at $10,297 but the price has since adjusted to $10,130 (market value).

Bitcoin Price Technical Picture

The technical levels regarding the largest traded asset in the industry have started turning bearish in the short term. For instance, the RSI is pointing south after the momentum in the overbought region faded. The downtrend is reflective of the slide from the weekly high currently seeking support at the 61.8% Fibo taken between the last swing high of $10,522 to a swing low of $9,468.

BTC/USD 1-hour chart

The momentum indicator in the hourly timeframe points towards increasing seller influence in the near term. If Bitcoin fails to regain momentum above $10,200, there is a chance that it could drop to test $10,000 (50% Fibonacci level). Otherwise many buyers are hoping to buy lower close to $10,000, a move that could see BTC/USD soar towards $10,500.

Bitcoin Key Levels

Spot rate: $10,130

Relative change: -57

Percentage change: -0.57

Trend: Bearish

Resistance: $10,200 and $10,500

Support: $10,000 and $9,800