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Bitcoin consolidation has been expanding since the price reached the $9,400 support after impulsive bearish pressure. After breaking below $10,000 with a daily close, the price is expected to push towards $8,500 observing the momentum. In light of the recent price correction, a counter-move to push towards $10,000 is more probable.
After a sharp decline, the bitcoin price found support near $9,120. There has been a very little movement in Bitcoin prices over the past 24 hours. It has ranged between $9,600 and $9,430 in a very tight channel with little indication of a breakout in either direction. A trade volume is dropping off, currently down to $13 billion. BTC is holding on to support at the moment as the two-day consolidation rolls into a third one. From its peak of $13,800 last month, BTC has declined 31 percent to current prices. This would be a perfectly normal reaction from the parabolic price rise in recent weeks. In fact, BTC has experienced greater corrections of up to 40 percent, so further losses could be imminent.
The key thing to note on the larger time frame charts is the lower lows. The bull market remains established, provided that Bitcoin does not plunge below $6k which could mean a major trend reversal. A drop to $8k would still mean that BTC has surged 100 percent in four months this year. This volatile week has marked an extension of the downward pressure that Bitcoin first incurred in late-June when BTC sharply moved to $13,800. This move has significantly bolstered bears and has jeopardized the upwards momentum that Bitcoin has faced since earlier this year. Additionally, this choppy price action over the past several weeks has allowed BTC to establish a new price range roughly between $9,350 and $9,650 which is likely to persist in the near future.
To sum it up, Bitcoin still has chances to push higher as it remains above $8,500-9,000 with a daily close in the coming days. Currently trading above $9,400 indicates further upward pressure and consolidation explains the volatility and indecision in the Bitcoin market. Ahead of Fed's rate cut tomorrow, the crypto market is set to trade under higher volatility. Nevertheless, Bitcoin has a greater probability to surge higher in the short term.
TECHNICAL OVERVIEW:
The price is currently trading at the level slightly above $9,400 being held by dynamic levels as resistance. The price is trading inside the Kumo Cloud dynamic resistance which is needed to be broken above for further upward pressure to push the price to $10,000 or higher in the coming days. The price also formed Bullish Divergence along the way which also signals upward pressure. As the price remains above $8,500-9,000 with a daily close, BTC is likely to extend further upward pressure.
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