Bitcoin (BTC/USD) has been consolidating. When we look at the 4H chart below we can see that price fell below a key support around $9300, but has popped back up after tagging $8400.
I think the key levels now are $10,000 and the $7900-$8000 area.
BTCUSD 4H Chart
- As price rebounds from $8400, it basically made a double bottom.
- I wouldn't get too excited about a double bottom here. I think we can expect some near-term bullish push, but that's all this little double bottom should signal.
- As price rallies out of the double bottom, bitcoin will likely see resistance around $10,000.
- The cluster of moving averages here can become resistance if bitcoin is not done with its bearish correction.
- Also, if the RSI is around 60 and turns back down, it would reflect maintenance of the prevailing bearish momentum.
- If price holds under $10,000, we can see a dip towards the $7900-$8000 area.
- On the other hand, a break above $10,400-$10,500 area could liberate BTC/USD and open up the $11750-$12000 area with potential of extending higher if this $10,000-$10,500 area becomes support.