Bitcoin Price Settles Above $9,600 But Ignoring This Double-top Pattern Is The Key To $10,500

May 20th, 2020

Bitcoin Price Settles Above $9,600 But Ignoring This Double-top Pattern Is The Key To $10,500

  • Bitcoin price holds dearly to $9,600 support even as attempts to break $10,000 rendered unsuccessful.
  • Bitcoin golden cross pattern could be the key for the breakout targeting $10,500 in the medium term.

The most traded cryptocurrency, Bitcoin has in the past several days struggled to break the resistance at $10,000. All attempts made to clear the resistance has been thwarted, culminating in Bitcoin testing lower levels at $9,600 and $9,500.

At the time of writing, Bitcoin is trading at $9,700 after holding above the short term intraday support at $9,700. On the upside, the immediate resistance is felt at $9,800. This short term resistance was overcome earlier today but the bulls hit a wall at $9,839 (intraday high). It is apparent that buyers lack the catalyst to sustain gains towards $10,000 despite the technical picture remain positive.

What Are The Odds Of Ignoring The Double-top Pattern

According to the prevailing technical picture, Bitcoin is comfortably in the hands of the bulls. The moving averages; 50 SMA and 200 SMA in the daily range display an interesting bullish picture with the formation of a golden cross. In other words, Bitcoin is on the verge of a technical breakout likely to ignore the double-top pattern and explored above $10,000. In the medium term, the ultimate target is $10,500.

BTC/USD daily chart

BTC/USD price chart
BTC/USD price chart by Tradingview

The RSI is also in support of the bullish breakout. For example, its recovery from the previous two weeks’ lows has been gradual but steady. If a breakout fails to come into play, consolidation above $9,600 would likely take precedence.

Bitcoin Intraday Key Levels

Spot rate: $9,700

Relative change: -83

Percentage change: -0.81%

Trend: Bearish (short term bias)

Volatility: Expanding

High: $9,839

Low: 9,635