Bitcoin (BTC) is once again approaching the key psychological level of support at $10,000 following a 1.5% drop in price this morning.
The fall in price comes after a tedious weekend that saw Bitcoin trading within a tight range between $10,200 and $10,430.
The 50-day EMA on the four-hour chart remains very close to crossing the 200-day EMA to the upside, which would signify a golden cross and short-term upside potential.
However, levels of support get weaker with every touch, and the $10,000 level may become exhausted after the latest test.
A break of $10,000 to the downside will bring the $9,350 level back into play. This level must hold or the symmetrical triangle that has been forming for two months will break to the downside, resulting in a potential move to $8,600 or lower.
There have now been three confirmed lower highs on the daily RSI as well, which may signify the beginning of a bearish reversal.
However, if BTC can bounce off the $10,000 level ahead of Bakkt’s Bitcoin futures launch, it could spur a volatile move to the upside with $11,350, $12,300, and $13,000 emerging as potential targets.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.