Down But Not Out: Bitcoin Remains on Hunt for $10K

Bitcoin (BTC) is reporting losses today, having failed to beat the key moving average resistance on Monday, however, the technical charts continue to favor a rally to $10,000.

Bitcoin ran into bids in early European hours yesterday, rising to a four-day high of $9,885, adding credence to Sunday’s bullish “outside day” candle. Further, BTC also witnessed a bull flag breakout (a bullish continuation pattern) on the hourly chart.

However, the bulls ran out of steam near the 50-day moving average (MA) resistance of $9,920 in the early U.S. hours.

As of writing, bitcoin is trading at $9,297, according to CoinDesk’s Bitcoin Price Index (BPI). The cryptocurrency has depreciated by 4.59 percent in the last 24 hours, as per data source CoinMarketCap.

Daily chart

BTC’s retreat from the high of $9,900 to $8,770 (prices as per Bitfinex) poured cold water on the optimism generated by the Sunday’s bullish outside day candle and the bullish triangle breakout.

Further, it also established the 50-day MA as a strong resistance (seen today at $9,888). BTC  alsoclosed yesterday (as per UTC) below the Feb. 25 low of $9,280, marking a failure to hold above the double top neckline.

The momentum studies show bear bias too. The 10-day moving average is sloping downwards, and there’s a bearish crossover between the 10-day MA and the 50-day MA. So, it appears the odds are stacked against a move above $10,000…

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