Bitcoin May Experience Another Rally
BTC/USD began correction to the downside from the $10.k zone. The price of the pair returned to the downside beneath $10.2k, but remains over the major 100 hourly SMA.
In recent times, the pair tried to surge past $10.5k barrier but could not continue higher and was able to form a short-term top close to $10,519.
The price eventually retraced to the downside beneath $10.4k. Further, a look at the hourly chart of the pair shows the breaching of the ascending channel of the previous day with support close to $10,360.
It paved the way for additional declines and the price moved under the support at $10.2k. It was able to attain near the $10k, but the 100 hourly SMA was a powerful bullish area.
The price was able to form a swing low close to $10,057 and it is now consolidating within a range.
A critical observation is the formation of a major contracting triangle with barrier close to $10,290. A look at the downside on the same chart shows that the triangle support is close to $10,180.
The major support on the downside is close to $10.1k and a move under it could keep up the downside move. The downside move could make the price retest the $9,890 support zone in the near term.
Hence, the pair may incur more gains through an upsurge over $10.3k. Besides, the price must be propelled over $10,325 to retest the $10.5k barrier.
In conclusion, an upsurge over $10.5k could establish the momentum for a run to $11k.