Bitcoin Technical Analysis: Don’t get too happy about the bounce – we are not out of the woods yet

• Bitcoin has bounced this morning but there are still signs of weakness
• 10,500 reistance level yet to be tested
• Indicators looking weak, this could be a small relief rally

Looking at the 4-hour chart above although there has been a pullback but volumes still seem to be light with only around 7k contracts traded on the Coinbase exchange and 2.9K on the futures markets. Compare this with the 5k sold on the sell-off yesterday in futures and 17.44k on Coinbase.  

Getting back to the chart now, the 10,500.00 resistance zone could be important today if the bears let us reach it. On the downside, the key level remains 9.500 as if the BTC/USD price breaks through there it would make a lower low and lower high formation. If we do get anywhere near 9,500 it would also confirm a break of the trendline on the chart too.  

On the indicator front, The Stochastic still remains at depressed levels while the MACD histogram is under the mid-point and also the MA’s both remain diverged bearishly also under the mid-line.