- Bitcoin longs traders’ belief in Bitcoin’s recovery create fresh demand boosting the price above $10,000.
- Bitcoin re-enters the broken symmetrical triangle support; potential for growth towards $10,400 is immense.
Bitcoin price is confirming my prediction that the drop to $9,600 on Thursday was a necessary evil. As any ardent trader or investor can tell you, there is not a single bull market that does not have fluctuations. The most important thing is to spot a higher low pattern and the resilience of the asset to stay above critical levels.
The dive to $9,600 came as a shock to many investors and traders alike. It was likely triggered by whales transferring a colossal amount in the leading cryptocurrency. Despite that, the four-hour XBT/USD Kraken price chart shows a breakdown was at its prime and could not be averted. Bitcoin has in the past several weeks narrowed towards $10,000 level. The upside is capped by a descending resistance while the downside has been recording a continued lower high pattern.
The formation of a symmetrical triangle as observed on the chart gave way to declines following a period of consolidation above $10,000. The slide was met by immense buying pressure as longs traders took positions betting on an increase in value. XBT/USD reclaimed $10,000 and is now holding ground at $10,171.
Immediately capping movement upwards is the 100 moving average (MA) on the four-hour timeframe chart. The price is also back in the apex of the triangle, however, a retracement is expected in the near-term.
The relative strength index (RSI) is above the average but pointing downwards as an indication to the growing selling pressure.