- Bitcoin maintains a gradual uptrend from last week lows but forming a lower high pattern.
- The Bollinger Bands currently narrowing into a constriction could end up thrusting Bitcoin past $10,000.
Bitcoin price impressively continues to hold above $10,000 support. The incomplete leg staged from the weekend lows infiltrated $10,600 resistance but failed to break above the critical $10,700. The weekly high at $10,680 left the door wide open for the bears. The price action in the last couple has had an affinity to losses.
However, a glance at the two-hour BTC/USD trading chart, we can spot a gradual uptrend from last week’s low at $9,750. Unfortunately, Bitcoin price is forming a higher low pattern. This is narrowing the price towards the key support at $10,000.
BTC/USD 2-hour chart
The trends of the Bollinger Bands indicator in the past shows that constrictions result in sharp drops in the value of Bitcoin. For instance, visibly the constriction of the Bollinger Band on August 24 paved the way for a massive reversal that sending Bitcoin under $10,000. A similar constriction between August 12 and August 14 saw Bitcoin plunge below $9,500 before forming a low at $9,467.
If history tells the trend, the Bollinger Bands currently narrowing into a constriction could end up thrusting Bitcoin past $10,000. This momentum could also ravage through other tentative support levels at $9,500, $9,000 and $8,800.
On the contrary, Bitcoin has a bullish bias in the short-term. The Moving Average Convergence Divergence is almost crossing into the positive region. The price is also above the Bollinger Bands 2-hour Upper curve. A correction above 100 Simple Moving Average could allow BTC to rise $10,250 resistance thereby helping to avert the lingering breakdown.
Bitcoin Technical Levels To Watch
Spot rate: $10,180
Relative change: 4.7
Trend: Strongly bullish.
The post Bitcoin Price Analysis: BTC Bollinger Bands Constriction Hint Intense Bearish Action appeared first on Coingape.