BTC could see another leg lower in the coming days to attract more buyers
Bitcoin price is finding support around $10,000 while the bullish potential has been limited by the $10,500 intermediate resistance for over a week already. The current dynamics in BTCUSD looks like a consolidation within a tight range with the prices continuing to consolidate around the 100-daily moving average.
Traders are cautious and indecisive in part due to the fact that the CME gap at $9,900-$9,650 remains a threat. On the positive side, BTC’s ability to stay above the $10,000 mark indicates an oncoming breakout and the overall market sustainability. Meanwhile, Peter Schiff, a famous bitcoin critic, said that BTC’s recent fall marks a new bear market.
The leading cryptocurrency by market capitalization was rejected from the $10,500 area yesterday and created a long upper wick on the daily charts. Of note, gold prices saw similar dynamics on Thursday, suggesting the two assets are correlating positively again.
Today, BTCUSD is marginally lower, refraining from higher volatility and clinging to the 100-daily moving average that arrives marginally below $10,300. On the four-hour timeframes, the technical picture looks neutral along with the major technical indicators. It looks like the digital asset will stay directionless in the short term before the bulls, or bears reenter the game.
Bitcoin could see another leg lower in the coming days to attract more buyers that may send the cryptocurrency above the $10,500 key resistance, followed by the $10,800 area, the $11,000 level, and the 50-daily moving average around $11,200.
On the downside, a break below the $10,000 psychological support could send the prices to the $9,800 level that could trigger a bounce and act as a bottom. If so, the potential rally could bring BTCUSD to fresh 2020 highs in the medium term. As of writing, bitcoin was changing hands just at the mentioned 100-DMA, a break above which could slightly improve the short-term technical picture.
