Bitcoin struggles to build on Saturday’s gains, still gains more than 6% for week

Bitcoin (BTC/USD) pair rose nearly 2% on Saturday but struggled to push higher as the lack of fundamental drivers behind that move suggested that it was a technical correction of the sharp drop witnessed on Friday. As of writing, the pair was trading at $10,380  losing 1% on the day. Despite today’s fall, however, the pair remains on track to snap its three-week  losing and was last up more than 6% on the weekly chart.

After breaking below the $10,000 handle toward the end of August, the pair didn’t have a difficult time recovering its losses and is now seems to be fluctuating in the $10,000 – $11,000 comfort zone where it spent the majority of August.

Technical outlook

Saturday’s rebound didn’t cause a major change in the Relative Strength Index (RSI) on the daily chart and the indicator continues to move sideways near the 50 mark to confirm the near-term neutral outlook. $10.450 (50-day MA) aligns as the initial resistance for the pair. Following  that level, a decisive break above  $10,750 (Fibonacci 50% retracement of June rally) could attract more buyers and lift the pair to  $11,500 (Fibonacci 38.2% retracement of June rally).

On the downside, near-term technical support levels  remain largely intact. $10,200 (Friday’s low/20-day MA) could be seen as the first support before critical  $10,000 (psychological level/Fibonacci 61.8% retracement of June rally) and $9,320 (Aug. 29 low).