- BTC bulls appear to face exhaustion after rejection at higher levels.
- A potential rising wedge formation spotted on the hourly chart.
- Acceptance below 10,693 is critical for further declines.
Bitcoin (BTC/USD) reversed Friday’s temporary reversal and resumed the previous bounce on Saturday, only to find stiff resistance once around the $10,800 region. The most favorite digital asset has erased early gains and trades neutral near 10,700, at the press time. The constant failure to sustain at higher levels suggests that the BTC bulls are facing exhaustion, having attempted recovery from Wednesday’s two-week lows of 10,137. The market capitalization of the No.1 crypto coin stands at $198.77 billion, as it is set to end the week about 2% lower.
BTC/USD: Hourly chart
As observed on the hourly chart, BTC/USD is teasing a rising wedge breakdown, with an hourly closing below the rising trendline support at $10,711 likely to validate the pattern.
However, the BTC bulls could be offered some temporary reprieve if they manage to hold onto the critical support at 10,693, where the horizontal 200-hourly Simple Moving Average (HMA) intersects with the upward-sloping 21-HMA.
The hourly Relative Strength Index (RSI) has turned flat while trending above the midline, at 56.12, indicative of a minor bounce.
On the pattern confirmation, the sellers will aim for the 10,439 target. On its way to the said level, the bullish 50-HMA at 10,626 could cushion the downside.
Further south, the 100-HMA at 10,526 will also test the bears’ commitment.
Alternatively, if the robust support at 10,693 holds, a rebound towards the $10,800 level cannot be ruled.
The buyers will then target the next barrier at $10,830, which is the convergence of the intraday high and rising trendline resistance.