- Bitcoin has settled above $10,500 amid low trading activity.
- A move above $11,000 is needed for the recovery to gain traction.
Bitcoin (BTC) has been range-bound since July 19 as an attempt to settle above $11,000 handle proved to be unsuccessful so far. The first digital coin has stayed mostly unchanged both on a day-on-day basis and since the beginning of the day; however, it is still 3% higher on a week-on-week basis.
While there is nothing new in terms of fundamental developments, BTC and the majority of altcoins are driven my speculative sentiments and technical factors.
Bitcoin’s technical picture
On the daily charts, BTC/USD has bottomed out at $9,080 on July 16. A sustainable move above $10,000 handle has improved the technical picture and mitigated an immediate bearish pressure; however, $11,000 remains unbroken so far. This area is guarded by a confluence of strong technical indicators including the middle line of 1-day Bollinger Band, SMA100 (Simple Moving Average) and SMA200 on 4-hour chart. This barrier is the next major aim for BTC bulls. Once it is out of the way, the upside is likely to gain traction with the next focus on $12,000.
On the downside, initial support comes at $10,300 (SMA50 4-hour followed by the lower line of 4-hour Bollinger Band). Then comes $10,150 (SMA50 1-day chart), closely followed by the psychological $10,000. A sustainable move below this barrier will extend the sell-off towards $9,450 (the lower line of 1-day Bollinger Band). The next barrier cones at the recent low of $9,080, which is dangerously close to critical $9,000.