Bitcoin Price Grapples With $10K — 2 Scenarios for the Week Ahead

Bitcoin (BTC) bears took their pound of flesh last Wednesday. However, was this simply a long-overdue correction that was needed for Bitcoin to continue to rally to fresh highs?

Today I’m going to look at the two scenarios that could play out next week.

Daily crypto market performance. Source: Coin360.com

The bearish scenario for Bitcoin price

BTC USD daily chart

BTC USD daily chart. Source: TradingView

It was a devastating blow for bulls last week on Wednesday, Feb. 19, as Bitcoin fell by approximately 10% in a single hourly candle. However as can be seen in the chart above, this channel had already been invalidated two candles prior, and what followed next is what seems to be a blatant display of whale flexing designed to leave both left both longs and shorts completely rekt.

This leaves Bitcoin in the early stages of a descending channel, which could see the leading digital asset retrace to $7,500 over the next 2-3 weeks. So right now, it’s important for Bitcoin to break out of this channel to reclaim a bullish trend.

The resistance here is $9,900 (which is what the price is currently at) and the support is $8,950. However, what if the original ascending channel wasn’t valid?

The bullish scenario for Bitcoin price

BTC USD daily hourly

BTC USD daily hourly. Source: TradingView

The bull in me wants to believe that the low we hit last Wednesday of around $9,250 has opened up the possibility of a slightly wider ascending channel, one that now sees support at $9,500 and resistance at $10,300 and then $11,085.

Annoyingly since the CME closed at $9,740 on Friday, both channels would remain valid in the highly likely event of the gap-filling in the week ahead.

As such, a glance at some key indicators can perhaps give some insight as to what we can expect.

The Relative Strength Index (RSI) indicator is neutral

BTC USD daily hourly

BTC USD daily hourly. Source: TradingView

The Relative Strength Index (RSI) Indicator remains remarkably neutral, with a reading of 56.07 on the daily. However, it did show Bitcoin as…

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