BTC/USD calm in readiness for explosion to $10,000
- Bitcoin price is stuck in consolidation with support at $9,000 and resistance at $9,400.
- The prevailing technical picture is likely to remain drab as buying and selling pressure cancel out.
- The tight Bitcoin market could erupt in high volatility sending the price above $10,000.
Bitcoin is still stuck in consolidation during the weekend session on Saturday. An attempt was made in the course of the Asian session to push BTC towards the range limit at $9,400 but the momentum lost steam at $9,302.
BTC/USD has adjusted to $9,278 (prevailing market value). Meanwhile, the existing trend is bullish which places the bulls in the driver seat. Unfortunately, the shrinking volatility could continue to limit the bulls despite the effort to break barriers at $9,300 and $9,400 respectively.
Technically, Bitcoin will hold onto the ongoing sideways action a while longer. There is literally no signal from the RSI of an impending downward or upward movement. In other words, buying pressure and selling pressure is currently canceling out.
The RSI is horizontal at the average and is likely to remain in the same position longer. With the MACD holding above the midline, it means that further losses are unlikely. Moreover, the gap made by the 50 SMA above the 100 SMA puts the bulls slightly in control.
As the market continues to squeeze, volatility is bound to return to the market. A break above $9,500 (weekly hurdle) would most likely allow gains to close in on the coveted $10,000. Some altcoins such as Ripple, Tezos, Chainlink and Cardano have already woken up from slumber and are intentional in making gains above the yearly highs traded in February.
BTC/USD 4-hour chart