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Bitcoin Price Tests Critical Support After Getting Rejected at $10,000.00. Will It Hold?

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Written By: Angeline Feliciano

May 26, 2020, 07:14 BST 07:14

Bitcoin price

Summary:

Bitcoin price is testing critical support after it failed to trade past $10,000.00 last week. With a double top chart pattern forming, can BTCUSD hold on?

As it turned out, the $10,000.00 was just too loft a goal for BTCUSD. Bitcoin price got rejected around $9,970.00 in last week’s trading. Because it is around the same level where BTCUSD topped on May 8, a double top chart pattern has formed.

When you enroll in our free forex trading course, you will learn that this is widely considered as a bearish reversal signal. If you are keen on shorting the cryptocurrency, you will need to keep tabs around $8,591.70. This price offers a confluence of support. For one, it corresponds to the neckline support of the double top. Second, it aligns with the falling trendline when you connect the highs of June 27, 2019 and February 11, 2020. A strong bearish close below this price could mean that there are not enough buyers around this level. And so, it could imply that there is enough bearish momentum in the market to push BTCUSD around its March 16 lows at $4,910.00.

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It’s also worth reiterating that it is not unusual for markets to retest a previous trendline for support. Reversal candlesticks around $8,745.00 could mean that buyers are bracing to push BTCUSD to its recent highs around $9,970.00. If there are enough buyers in the market, bitcoin price may even trade higher to its February 11 highs around $10,483.00.

Written By: Angeline Feliciano

Angeline Feliciano has been trading Forex for over ten years. She has invaluable experience working in FX education companies like BabyPips.com and Learn to Trade as a trader, currency analyst, trading coach, and presenter. Aside from these roles, she has also created intensive educational content on fundamental analysis which is heavily sought after by retail traders. She has taught hundreds of people how to trade the FX market in the Philippines and in Australia. When she is not trading, you can find her in the gym lifting weights.