Bitcoin Price Analysis: Below $10K, Challenging 2020 Rising Support

Earlier today, bitcoin fell below $10,000 and tested the support of the trendline rising from January 3 lows near $6,850. 

Zooming in on the 4H chart shows the digital currency has so far managed to hold on to the ascending trendline support. 

4H chart

Traders can consider adding long positions if the trendline fuels a break above $10,000, putting back the recent high of $10,500 on radar. 

Alternatively, a 4H close below the trendline could bring additional losses toward $9,100. 

Hence, traders can build shorts following the breakdown of the rising support, although with tight stops as diagonal breakdowns often end up as bear traps, especially in a strong bullish trending market like the one we have witnessed over the last six weeks.

Sellers could succeed in pushing the cryptocurrency below the acceding trendline as the negative RSI divergence on D1 is pointing to weakening of the upward momentum. 

D1 chart

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