Since on May 17, Bitcoin has been consolidating above $9,700 because of the vital price levels in the lower region above $9,000. These vital price levels range from $9,200 and above. These levels provide a backup for the sustained upward momentum that resulted in the several retests without conquering the $10,000 resistance zone.
Nonetheless, for the past week, Bitcoin has been trading in the upside range between $9,300 and $10,000. The several retests we have noticed for the past few days were made possible because of the backup in the lower region above $9,000. When price retraces to $9,300 low it finds support and immediately resumes the uptrend.
However, in the last three days, Bitcoin has been hovering above $9,700 for a possible breakdown or breakout. There is the appearance of small body candlesticks like Doji and spinning tops. This indicates that buyers and sellers are at a crossroads about the direction of the market.
Meanwhile, as the price is hovering or consolidating above $9,700 is an indication of a possible rebound or breakout. Assuming a breakout occurs in the consolidation area, it is sufficient to rally above $10,000 resistance. Possibly if the price is sustained, the market will reach the next support at $10,500. Conversely, if the bulls fail to overcome the resistance, BTC will face bearish reaction. Meanwhile, Bitcoin is at level 56 of the daily Relative Strength Index period 14.
Bitcoin consolidating above $9,700
On the daily chart, the price action has indicated three small body candlesticks. These indecisive candlesticks signify that the market is in a period of consolidation.
In a period of consolidation, the market will go either way. On the upside, a breakout will propel a price above $10,000 and extend to the next support at $11,400. On the downside, a breakdown will sink Bitcoin to the low of $8,200 and the selling pressure will reach the low of $8,000. Nevertheless, BTC is approaching the overbought region, above 80 % range of the market. Although the bulls are in control, this may be a bearish signal.