Bitcoin price holds firmly in a narrow range with support at $10,000 and resistance at $10,400. Bitcoin price is in consolidation, but Into The Block on-chain data shows that recovery above $11,000 is in the offing. The flagship cryptocurrency traded above $10,000 the weekend over, but again, not much action was encountered to the upside. Support at $10,000 remained intact, and so did the resistance at $10,400. At the moment, Bitcoin is trading at $10,150 after losing a subtle 0.21% of its value on the day. There have been many instances when BTC has traded above $10,300. However, it failed to test the hurdle at $10,400, just like the intraday high at $10,312 (Coinbase) traded during the Asian session.
The pioneer digital asset suffered a massive blow to the uptrend it had sustained for more than a month towards the end of last week. Before the breakdown, Bitcoin was pivotal between the broken support at $11,100 and the critical $12,000. Gains above $12,000 became unstainable, exhausting the buyers hence the freefall to levels slightly under $10,000. On the daily chart, Bitcoin price is doddering below a long term ascending trendline. Intriguingly, BTC has encountered immense support at $10,000. The support seems to have helped BTC avert the bearish call (close the CME BTC futures gap to $9,600) discussed on Friday.
As traders and investors scratch their heads in a bid to identify the direction Bitcoin would take, it is essential to realize that technical indicator such as the Relative Strength Index (RSI) point towards sustained consolidation before a breakout. The RSI is an index that illustrates how strong a particular trend is. In this case, the sideways movement at 37.50 hints that BTC/USD will remain range-bound between short term support at $10,000 and the resistance at $10,400, at least for the near term.