- A breakout is expected to break the tringle resistance and zoom past the range resistance at $6,460.
- Bitcoin buyers holding tight to the support at $6,400; they lack momentum to correct past the range resistance.
Bitcoin experienced another rejection at the upper range limit around $6,450. The asset recorded highs of $6,459 before embarking on a downward trend. BTC/USD reached lower below $6,420, $6,400 support zones, moreover, the 100 SMA did little to help. Bitcoin dipped lower and recorded lows around $6,390 but later made an upwards correction reclaiming the support at $6,400. Bitcoin bulls pushed the price higher, although the trend to the north has been capped by the 61.8% Fib retracement level between the high of $6,663.69 and the lows of $6,060.88.
At the time of writing, the 4-hour 100 simple moving average is limiting gains at $6,411.41 while Bitcoin is dancing at the edge of a cliff (pivotal around $6,400). The price is also settled in a contracting triangle pattern. A breakout is expected to break the tringle resistance and zoom past the range resistance at $6,460. This move is likely to allow the bulls to regain control of the price pushing Bitcoin above the medium-term resistance at $6,500.
On the flipside, if the sellers increase their grip on the price and Bitcoin breaks the triangle support, further breakdown is will correct below the range support at $6,355.65 (marginally below the 50% Fib level). The next support target is at 6,200 while $6,100 is the key support area. The declines at the beginning of the second week of October Bitcoin traded lows of $6,060 and defended the primary support at $6,000. This area is expected to whole ground if the unpredictable market swings to the south again.
BTC/USD 4-hour chart
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