Bitcoin price chart analysis: sellers in control below $10,600
18:21, 14 September 2020
Bitcoin was only able to manage a tepid upside recovery last week, as traders remained cautious after the recent early-month sell-off in the pioneer cryptocurrency.
Bitcoin price chart analysis shows that the BTC/USD pair could be preparing for its next major leg lower towards $9,000.
Bitcoin medium-term price trend
Bitcoin continues to trade on the defensive, as the S&P 500 index remains weak, and the US dollar index is showing early signs of recovery.
Furthermore, historical data shows that the month of September has been Bitcoin’s worst performing month since the cryptocurrency’s inception.
Bitcoin price technical analysis shows that failure to rally the price above the $10,600 level should encourage technical selling.
Continued weakness below the psychological $10,000 barrier could see the BTC/USD pair falling towards $9,000.
The daily time frame shows that a break under the $9,600 support region is required to accelerate technical selling towards $9,000.
Traders should note that a major decline in the S&P 500 and the Nasdaq would also increase downside pressure towards BTC/USD.
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Bitcoin short-term price trend
Bitcoin price technical analysis shows that short-term bears remain while the price trades below the $10,300 level.
The four-hour time frame highlights show that an inverted head-and-shoulders pattern will form if the price reaches $10,600.
According to the size of the potential inverted head-and-shoulders pattern, the BTC/USD pair could rally towards the $11,400 area.
Traders should note that continued weakness under the $10,300 level may encourage sellers to test towards the $9,800 to $9,600 support zone.
Bitcoin technical summary
Bitcoin technical analysis highlights that bulls need to rally the cryptocurrency above $10,600 in order for the ongoing recovery to gather much-needed momentum.
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