The price of bitcoin (BTC) is around $10,400 at the time of writing. We look at the charts and discuss possible scenarios.
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The silence before the storm seems to have returned, with a consolidating rate above $10,000. The daily chart shows little movement and is stuck in a tight region between the strong support of $10,000 and $10,500.
This is a sign that we may have to wait some time before the price moves again.
The fact that the support is currently holding up so strongly is a good sign. That means that $10,000 is strong enough to take a big hit. We have seen that in recent days with the rise in volatility.
- However, whether we will see another rise and recovery is still to be seen. A sideways movement can always break out, both up and down. That is why it is a good thing to act with caution in the market.
If we see a rise, it will be very positive for the further course of Bitcoin’s price. And that will be a confirmation of the support around $10,000. Earlier that limit was a strong resistance.
When we look at the daily chart of Immediate Bitcoin price, we can clearly see how the price is currently moving sideways. In addition, the price is currently at a resistance of $10,400.
Most likely to test support again around $10,000 afterwards. A clear movement of consolidation.
Bitcoin day chart 10 September 2020
Should the price break out anyway, we see a price around $10,900 as a first strong stop. With opportunities to continue to rise above $11,000. A place where the price has held up well over the past few weeks.
A fall and an outbreak downwards could result in the breaking of $10,000, although this seems to be becoming less likely. Given the lack of support. Should this point break, a price around $9,800 should be strong enough to push the price upwards.
It is difficult to say how the price reacts to the breaking of $10,000 and can result in a lot of volatility. But for now we see a sideways movement on Bitcoin’s daily chart.
Bitcoin (BTC) 4-hour chart
Zoom in a bit further and we see the same sideways movement on the 4-hour chart as we see on the day chart. The many tests between $10,000 and $10,500 are clearly visible here. A tight range in which the price is currently moving.
We do not get much clarity from this, but we do see that the price responds positively to the test of support. And is quickly moving back towards the upper limit of consolidation. Also in this timeframe we see that there is room to rise again and we can quickly see levels above $11,000.
Bitcoin (BTC) 4-hour chart 10 September 2020
What will bitcoin do?
Now we have to wait and see whether the price rises or falls through the $10,000 limit. If we go up we see $11,000 as a nice first level and if we go down we see $9,800 quickly as the first important support. A somewhat unknown area for the price, with uncertainty about the sequel.