Bitcoin Price Prediction: BTC free-falls from weekend highs, can the 50 SMA hold?

  • Bitcoin price fails to sustain the weekend breakout above $10,400, hitting a barrier at $10,600.
  • BTC/USD continues to trend within the toughest seller congestion zone between $10,311 and $10,620 according to on-chain metrics.

The flagship cryptocurrency briefly stepped above the stubborn resistance at $10,400 over the weekend where it traded very close to $10,600. Unfortunately, the momentum fizzled out, culminating in a drop back into the range ($10,000 – $10,400). At the time of writing, Bitcoin is exchanging hands at $10,316 amid a growing bearish grip.

The Relative Strength Index (RSI) in the 4-hour range puts emphasis on the increasing selling activities, especially with the drop under the midline. If the downtrend continues under 40 and towards 30 (oversold region), BTC may kick start another breakdown towards the range support at $10,000.

Related reading: Bitcoin Price Analysis: BTC/USD Hunting For Explosive Breakout, Is $11,200 The Rendezvous?

BTC/USD 4-hour chart

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

Meanwhile, the 50 Simple Moving Average at $10,265 is in line to offer much-needed support. If the price can hold above this zone, there is a likelihood of the bellwether cryptocurrency resuming the uptrend. The same downside is also protected by an ascending trendline. It is essential for Bitcoin to hold above this trendline to be safe from potential losses eyeing $10,000.

IntoTheBlock IOMAP
IntoTheBlock IOMAP

According to on-chain data by IntoTheBlock, Bitcoin is set to face its hardest test this week in the range between $10,311 and $10,620. Note that the resistance in this area is brought about by the 1.22 million addresses that previously purchased 827,250 BTC. However, if this zone is flipped into support, the largest cryptocurrency will have a relatively smooth ride above $11,000. The next critical resistance is highlighted between $11,238 and $11,547, a range where 1.1 million addresses bought 521,050 BTC.

Bitcoin Intraday Levels

Spot rate: $10,316

Relative change: -18.95

Percentage change: -0.22%

Trend: Bearish

Volatility: Low

Read more:  Bitcoin Technical Analysis: BTC Blasts Through Triangle Resistance, All Eyes On $10,800

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