Bitcoin is still in recovery mood following the notable blow it suffered last week.
After failing to beat the MA on Monday, Bitcoin is recording loses today. However, the charts show that it is still in a rally for $10,000.
The Struggle To Reach $10,000
Yesterday, Bitcoin went up to a four-day high of about $9,885 topping up the credence after a bullish Sunday. Impressively, Bitcoins price also experienced a bullish continuation on the hourly chart.
Unfortunately, the bulls got tired just before it crossed the 50-day MA of $9,920. As at the time this piece was written, BTC was trading at $9,297 showing a depreciation of about 4.59% within a 24-hour period.
The fall from $9,900 to about $8,770 according to Bitfinex prices, was discouraging to traders. Everyone expected a bullish take over following Sunday’s breakout.
The cryptocurrency has failed to stay above the double top neckline closing below the Feb 25 low at $9,280.
An in-depth study of the trend reveals some bear bias. The possibility of the cryptocurrency moving above $10,000 is currently slim with the 10-day moving average going lower. The bearish take over between the 50-day MA and 10-day MA stacks the odds against a bullish crossover.
Down, But Not Out
Although BTC price is not at a good place, it is still trading above the candle low of $8,342 that was set on March 9th. The pattern of the candlestick is sign of a bearish exhaustion.
It’s safe to say that there is at least a 50% chance of a corrective rally as long as it trades above $8,342. However, the gains may not be sustainable as the weekly chart shows a relative strength index in favor of the bears. The only thing that will confirm a long-term bullish take over is a close above $11,700.