Bitcoin Price Revisits $10K, But Will It Stay?

Bitcoin is te a recovery mode after yesterday’s seemingly news-driven druppel, but the gains could be transient, technical analysis suggests.

Soon before press time, CoinDesk’s Bitcoin Price Index (BPI) had bounced back to $Ten,070 – up 6 procent from the previous day’s low of $9,468 – and wasgoed last seen at $9,993. However, on a 24-hour voet, the world’s largest cryptocurrency by market capitalization is still reporting a Four.25 procent druppel, according to CoinMarketCap.

Twenty-four-hours ago, bitcoin (BTC) wasgoed trading around $Ten,500 and clocked a high of $Ten,702 at 15:00 UTC before falling more than $1,000 to the lowest level since Feb. 26.

Albeit the sell-off wasgoed largely te line with bearish technical set up, negative news flow seems to have added fuel to the fire.

Spil reported by CoinDesk, it wasgoed exposed that the trustee of collapsed Japanese bitcoin exchange Mt Gox, Nobuaki Kobayashi, had dumped $400 million-worth of bitcoin and bitcoin metselspecie – a stir that has angered some investors.

Reports of unauthorized sells on cryptocurrency exchange Binance and technical issues at cryptocurrency derivatives exchange BitMEX have also added to bearish pressure around BTC.

Further, the SEC issued a statement that looks to have added to the market’s jitters, tweeted by CoinDesk, telling:

Three/ SEC: “If a toneel offers trading of digital assets that are securities and operates spil an ‘exchange,’ spil defined by the federal securities laws, then the toneelpodium voorwaarde register with the SEC spil a national securities exchange or be exempt from registration.”

For now, however, it shows up the sell-off has ended around the key 38.Two procent Fibonacci retracement of the rally from the Feb. 6 low and Feb. 20 low.

Daily chart

Spil seen ter the chart above (prices spil vanaf Bitfinex), BTC left a higher low around $9,577 (38.Two procent Fibonacci retracement) ter late February and rose to $11,700 (Mar. Five high). Once again, the 38.Two procent Fibonacci retracement is proving a rough waarde to crack.

The 1-hour chart, below, shows scope for a minor recovery spil the relative strength index (RSI) has diverged te favor of the bulls.

1-hour chart

The “lower lows” on the price chart and the “higher lows” on the RSI (bullish divergence) indicate that BTC could re-test the descending 50-hour moving average (Moeder), presently seen at $Ten,427.

That said, the gains will likely be short-lived, spil the 50-hour Mama, 100-hour Mamma and 200-hour Moe are all trending lower ter favor of the bears. Further, the 100-MA has almost crossed the 500-MA from above (bearish crossover).

Daily chart Two

Bitcoin’s close (spil vanaf UTC) below the 50-day Moe yesterday, and the bearish 5-day Mamma and 10-day Moeder crossover, add credence to the bearish set up discussed yesterday and has boosted the odds of a further decline te prices. And, the RSI has dipped below 50.00, also signaling a scope for further losses.

A minor corrective rally to $Ten,400-$Ten,500 cannot be ruled out, but gains will likely be short-lived.

BTC looks set to test $8,906 (200-day Mamma) and could possibly extend the decline to $8,000.

Bullish screenplay: A high volume pauze above $11,000 ter the next 72 hours would mean the sell-off from March Five high of $11,700 has bottomed out around $9,577 (38.Two procent Fibonacci retracement) and could yield a much-awaited bullish pauze above the inverse head-and-shoulders neckline resistance.

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