Bitcoin’s pullback from $10,200 to $9,736 indicates the rally from the January 24 low near $8,200 has ended and despite the sizable recovery to $10,000, the bulls will likely stay on the sidelines as the D1 chart RSI has rolled over from overbought levels, hinting at correction.
Further, the 4H RSI has dived below 80 with a bearish divergence and the price has invalidated the trendline rising from January 24 lows.
Another drop toward $9,700 could be seen. A violation there would shift the focus to the support at $9,575 (former resistance).
On the flip side, another bounce from near $9,700 will likely invigorate bullish forces, yielding a stronger move above today’s high of $10,200.
Traders should note that a break above $10,200 would put the spotlight on the next resistance lined up at $!0,540 (October high).