Bitcoin Price Analysis: Sellers Breach Rising Trendline

Bitcoin is back on the offer, having failed to keep gains above $10,000 earlier today. 

Zooming in on the 4H chart shows, the digital currency has breached the trendline rising from the January 3 low of $6,850. 

The current 4H candle needs to close below the trendline support to confirm breakdown.

4H chart

A bearish 4H close could be seen as the RSI is hovering below 50, signaling a bias for a downside move.

Traders, however, should take into account the final shape of the candle. A breakdown would look unconvincing if the candle ends with a long lower wick, similar to what we are seeing right now.

The breakdown would be deemed convincing if the candle ends with a big red body. That would shift the focus to deeper support levels at $9,271 (200MA) and $9,078 (February 4 low). 

From trading perspective, traders may boost long exposure if prices rise above $10,048 (today’s high). That would bring resistance at $10,200 on radar. A violation there would expose $10,500. 

At the time of writing, bitcoin is priced at $9,780 on Coinbase. Prices hit a low of $9,612 a few minutes ago. The current 4H candle is carrying a long lower shadow.