Bitcoin started a downside correction from the $10,500 area against the US Dollar. BTC declined below $10,200, but it is still holding the key 100 hourly SMA.
- Bitcoin price failed to climb above $10,500 and corrected lower against the US Dollar.
- There was a sharp dip below the $10,200 level before the bulls protected the 100 hourly SMA.
- There is a key contracting triangle forming with resistance near $10,290 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could either rally again above $10,300 or it might extend its decline below the $10,100 support.
Bitcoin Holding Key Support
Recently, bitcoin made another attempt to climb above the $10,500 resistance area against the US Dollar. However, BTC price failed to continue higher and formed a short term top near $10,519.
Later, there was a downside correction below the $10,400 level. Moreover, yesterday’s ascending channel with support near $10,360 was breached on the hourly of the BTC/USD pair.
Fresh Rally?
On the upside, the triangle resistance is close to the 50% Fib retracement level of the recent drop from the $10,519 high to $10,057 low.Therefore, an upside break above the $10,300 level might accelerate gains in bitcoin in the coming sessions. Having said that, the bulls need to push the price above the $10,325 level to revisit the $10,500 resistance.
