- Bitcoin holds above $9,600, short term support amid consolidation.
- The sideways trend is empathized by the technical picture; both the MACD and the RSI.
Bitcoin is nearing the end of the consolidation period after the efforts to rise above $10,000 were nullified last weekend. Last week’s recovery to highs above $10,400 was incredible but short-lived mainly because it did not attract the desired volume. Of course, support above $10,000 was unsustainable, leading to losses. Support has been established above $9,600 and BTC/USD teetering at $9,675. On the upside, Bitcoin bulls are facing selling pressure at $9,700 while the next hurdle lies with $9,800.
The technical picture shows Bitcoin in consolidation. Both the RSI and the MACD are horizontal at 54 and 300 respectively. As long as the sideways trending continues, this consolidation could last longer. Moreover, volatility and trading volume are low. The majority of the buyers are waiting to buy low; preferably at $9,400 and $9,300 (just like last week). Fresh demand is the only way to detangle BTC from the bearish trap.
In case losses continue towards $9,000, support is envisioned at the ascending trendline, $9,400 and $9,200. On the upside, a break above $10,000 if supported with the right volume, could sustain towards the coveted $11,000. After all, Bitcoin has already traded above $10,500 in February. The wide gap between the 50 SMA and the 100 SMA displays a stronger bullish front.