Bitcoin failed to sustain bullish momentum above the $9,400 resistance level last week, causing the pioneer cryptocurrency to drop back towards the $9,100 level.
Bitcoin price chart analysis shows that buyers still need to anchor price above the $9,400 level to encourage further gains towards the $9,800 level.
Bitcoin medium-term price trend
Bitcoin buyers need to anchor price above the $9,400 resistance level this week to avoid sellers forcing the cryptocurrency back towards the June monthly low.
Bitcoin price technical analysis shows that the BTC/USD pair’s 50-day moving average remains the key for further upside advancement.
Traders typically use the 50-day moving average as a key gauge of medium-term strength. Gains above the $9,400 level could provoke a technical test of either the $10,000 or $10,400 levels.
Failure to anchor price above the $9,400 level could see the BTC/USD pair slipping towards medium-term support around the $8,800 level.
Bitcoin short-term price trend
Bitcoin price technical analysis shows that short-term bulls remain in control while the price trades above the $9,200 level.
The one-hour time frame shows that a bullish inverted head and shoulders pattern remains valid while price trades above the $8,900 level.
According to the size of the reversal pattern the BTC/USD pair could rally towards the $10,000 resistance level.
Traders should note that the neckline of the bullish reversal pattern is located around the $9,400 resistance level.
Overall, watch out for the next 500 point directional move once the $8,900 to $9,400 price range is broken.
Bitcoin technical summary
Bitcoin technical analysis indicates that a break from the $8,900 to $9,400 price range could cause a 500 point directional move.
Trade Bitcoin to US Dollar – BTC/USD CFD
Ready to get started?