Bitcoin
$48,488.52+2.12%
Ethereum
$3,481.76+0.34%
XRP
$1.09+1.61%
Cardano
$2.40+0.85%
Polkadot
$35.30+4.34%
Stellar
$0.325685+1.70%
Dogecoin
$0.242835-0.56%
Chainlink
$28.88+1.79%
Uniswap
$24.71-0.21%
Polygon
$1.39+3.89%
Litecoin
$182.76+0.73%
Bitcoin Cash
$634.88+1.68%
Algorand
$2.04+2.50%
Cosmos
$38.99+12.60%
Wrapped Bitcoin
$48,529.13+2.09%
Filecoin
$85.38+3.65%
The Graph
$0.843284+1.36%
Tron
$0.107467+1.44%
Ethereum Classic
$57.65+1.14%
Aave
$362.84-0.76%
Tezos
$6.59+4.29%
EOS
$5.42-0.91%
NEO
$50.15+1.36%
Monero
$271.05+4.09%
IOTA
$1.66+0.26%
BitTorrent
$0.003969+1.09%
Bitcoin SV
$159.23+0.84%
Waves
$29.67+1.55%
Maker
$2,882.79+2.16%
Dash
$204.43+1.67%
Decred
$146.19-0.71%
Decentraland
$0.831811+0.71%
ICON
$1.94+1.21%
NEM
$0.185485+0.48%
Zcash
$140.55+3.10%
Qtum
$12.70-0.91%
NuCypher
$0.332575+0.76%
Bitcoin Gold
$66.67+1.42%
Yearn Finance
$34,078.17+1.40%
OmiseGO
$8.60+1.84%
Basic Attention Token
$0.764303+1.20%
0x
$1.12+3.44%
Paxos Standard
$0.999773-0.00%
Ren
$0.996931+6.75%
Fetch.ai
$0.862882-2.45%
Bancor
$4.13+1.16%
Band Protocol
$9.39+2.49%
Siacoin
$0.019099+3.41%
Kava.io
$6.27+1.37%
Nano
$5.53+1.52%
Loopring
$0.460534+0.22%
Storj
$1.41+2.05%
Civic
$0.540734-1.15%
Numeraire
$48.86+12.60%
Lisk
$3.61+1.36%
Orchid
$0.370837+2.18%
PAX Gold
$1,766.37+0.39%
Augur
$26.37+1.09%
Aragon
$6.14+5.39%
Enzyme
$124.97+9.84%
district0x
$0.180803+2.91%
Kyber Network
$1.83-1.31%
SingularDTV
$0.001468-7.97%
Tether
$1.00-0.03%
USD Coin
$0.999948-0.05%
Dai
$1.00+0.01%

$10K Proving a Tough Nut to Crack for Bitcoin's Bulls

Bitcoin needs to break past the session high of $10,028 to revive the immediate bullish setup.

Feb 24, 2020 at 11:21 a.m. UTC
Updated Sep 13, 2021 at 12:20 p.m. UTC

View

  • Bitcoin's immediate outlook remains neutral, with a lower-highs setup on four-hour charts still intact.
  • A sustained break above $10,028 would invalidate that pattern and revive the bullish view, opening the doors for resistance at $10,300 and $10,500.
  • On the downside, key average support at $9,508 is the target for the bears. A violation there would likely bring a deeper drop to $9,075 (Feb. 4 low).

Bitcoin retreated after crossing into five figures early on Monday, establishing the psychological level of $10,000 as the resistance to beat for the bulls.

After briefly touching $10,008 at 01:30 UTC, according to CoinDesk's Bitcoin Price Index, the cryptocurrency had fallen back to $9,620 by 03:00.

Bitcoin (BTC) has now failed twice in the last 24 hours to find takers above $10,000. Another attempt during Sunday's early U.S. trading hours also saw prices print a high just above $10,000 only to plunge quickly to $9,850.

The failures have poured cold water over the optimism generated by the move higher seen over the weekend. Bitcoin remained resilient around $9,650 on Friday, despite a bearish turn by the money flow index, and rose to five figures on Sunday.

Importantly, with the rejection at $10,000, bitcoin has logged another bearish lower high on the technical charts – one of a succession since the recent rally stalled at $10,500 on Feb. 13.

Invalidation of the lower highs setup is needed to revive the immediate bullish case. As a result, the high around $10,000 observed during Monday's Asia hours is the level to beat for the bulls.

Bitcoin is currently trading at $9,750 on Bitstamp. Meanwhile, its global average price as calculated by the Bitcoin Price Index is $9,765, down 1.38 percent over 24 hours.

4-hour chart

Bitcoin has printed three lower highs (marked by arrows) on the four-hour chart over the last 10 days, the latest being $10,028 (as per Bitstamp prices).

A high-volume move above that level would imply a continuation of the broader uptrend from January lows below $7,000 and open the doors for a re-test of the Feb. 13 high of $10,500.

However, at press time, bitcoin is looking south, with the trendline rising from Feb. 19 lows now breached to the downside. So a drop to the 200-candle average at $9,508 cannot be ruled out.

Acceptance under that technical line, which acted as strong support last week, could bring a deeper slide toward the higher low of $9,075. (Feb. 4 low).

Weekly chart

Bitcoin produced a doji candle last week, as prices swung both ways in the range of $10,300 to $9,300 before closing out on a flat note. The pattern appeared after a notable price rally and is indicative of indecision among buyers.

A strong move above $10,300 would imply bull confidence has returned and would likely yield a stronger move toward $11,000.

Failing that, though, a sell-off to below $9,300 would confirm a bearish doji reversal pattern.

The odds of a move above $10,300 would rise if the lower-highs setup on the four-hour chart is invalidated with strong volumes.

Disclosure: The author holds no cryptocurrency at the time of writing

DISCLOSURE

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

Loading...