By CCN Markets: On August 28, the bitcoin price flash surged across major cryptocurrency exchanges, rising to as high as $10,800 on BitMEX, the largest margin trading platform for crypto traders based on daily volume.
A large number of shorts were liquidated on BitMEX, triggering buy orders at a higher price, taking the bitcoin price to a key resistance range in $10,800 to $10,900.
Previously, traders like Scott Melker emphasized $10,900 as an important resistance level for bitcoin and indicated that the failure to climb above it could create a difficult market for both bears and bulls.
“This is how I am watching it on the hourly chart. Holding the major ascending support, presently in a small trading range with a likely pennant formed. Red line ($10,900) is key resistance,” Melker said earlier this week.
Too early to say trend reversal for bitcoin
According to DonAlt, a cryptocurrency technical analyst, bitcoin could be demonstrating volatile movements in a large range between $9,400 and $12,000 and has not shown any decisive movement to convincingly direct the market towards a bearish nor a bullish trend.
However, the trader noted that the support range of bitcoin, which was tested five times since mid-July, is weakening and that a move to the low $9,000 region could decide the medium term trajectory of the dominant cryptocurrency in the coming months.
“Closed above mini resistance and immediately dumped off. That’s what I mean when I say choppy conditions. That said it never left the lower trading range, and as long it’s in there short term bias has to be bearish.