- Bitcoin price prints a classic ABC pattern likely to see the price back to $10,000 but only if the resistance at $9,800 is broken.
- The bulls cannot afford to have another slump under $9,500 as it will open the road to $9,000.
Bitcoin has been trading within an upward channel since the beginning of January. The channel has withstood both bearish force and bullish forces except the dip this week that saw Bitcoin price dive to lows of $9,281 (on Coinbase). In other words, it has been a week that has seen the sellers do more damage compared to the good brought forth by the buyers.
Following the recovery to levels as high as $10,330, Bitcoin dived under $10,000. However, this time the losses penetrated the support at $9,500. The sellers extended the bearish leg under $9,300, hitting a weekly low at $9,281.
BTC/USD hourly chart
A visible recovery on Friday has sent Bitcoin above the critical $9,700 level. This zone has worked as a stepping stone for BTC’s surge above $10,000 before and is expected to provide the pedestal once again. Scanning the levels to the north, Bitcoin bullish movements are likely to encounter resistance at $9,800, the broken channel support and the 100 SMA on the 4-hour chart.
Bitcoin price has also completed the classic ABC pattern following the resistance at $10,500 and the support at $9,500. It is, therefore, important that Bitcoin uses the weekend to push and establish support above $10,000. The downside of not seeking higher support is that sellers are likely to increase their entries with Bitcoin tumbling to $9,000.
For now, the price is largely in the hands of the bulls. Most analysts believe the weekend session would be a success for Bitcoin but I would suggest keeping the asset on the watch list until a clear map is made above $9,800.
Bitcoin Price Levels:
Spot rate: $9,714.78
Relative change: 107
Percentage change: 1.12%
Trend: Bullish
Image from TradingView
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