Bitcoin retreated after the morning of 24 February Monday reached five-digit figures, setting the psychological level of $10000 as a resistance for the bulls.
After reaching $10008, the cryptocurrency fell to $9620, and at the time of publication of this article the average price of bitcoin on the resource CoinMarketCap is $9728, with the fall of 1.24% for 24 hours.
Bitcoin (BTC) twice in the last 24 hours couldn’t hold on more than $10 000. Another attempt took place during early trading in the U.S. on Sunday, when prices reached just above $10,000, and dropped to $9850.
Kickbacks cooled optimists who were hoping for further upside after a promising weekend. Bitcoin has remained steady at $9650 on Friday despite a bearish turn in money flow index, and up to five-digit figures on Sunday.
It is important that the pullback of $10,000, bitcoin recorded another bear maximum per technical charts – one of the following, after the recent recovery, which has stalled at $10 500 13 Feb.
For instant recovery bullish movement is necessary the cancellation of lower highs. As a result, the maximum that was achieved during the Asian session on Monday, this is the level at which it is necessary to overcome the bulls.
The 4-hour chart
Bitcoin has demonstrated three lower lows (marked with arrows) on the four-hour chart the last 10 days, last – $10 028 (according to prices on Bitstamp).
The movement of a large volume above this level will signal the continuation of a broader growth from January lows below $7,000 and would allow for a retest of the high of 13 Feb, $10500.
At the moment the indicator bitcoin demonstrates the downward direction. Thus, we cannot exclude the probability of a decline of the moving average for 200 days at $9508.
The adoption of this technical line, which last week acted as a strong support, can lead to a deeper slide to the lowest low of us $9075. (Minimum 4 February).
Last week, bitcoin has released a doji candle, because price fluctuations in both directions range from $10 300 to $9300 before closing in a fixed position. This model appeared after a significant fall in prices and testifies to weakness of buyers.
A strong move above $10300 would be a return of confidence of bulls and likely would lead to further advancement to $11000.
If this is not achieved, we should expect sales to $9300 would confirm a bearish doji candle.
The probability of movement above $10300 will increase if large volumes of trading will invalidate the establishment of lower highs on the four-hour chart.