Bitcoin Bounce Capped by $10K Price Resistance

Moving average studies and key indicators like the relative strength and the Chaikin money flow indices on the daily chart continue to call a bearish move.

A high-volume break above $10,000 could yield a move to $10,400, but a 4-hour close above $11,080 is needed to invalidate the short-term bearish setup.

Bitcoin's recovery from one-month lows looks to have stalled near $10,000 and the cryptocurrency may end up charting a bearish lower high around the psychological resistance level.

Further, technical charts indicate the bounce seen in the last 24 hours lacks volume support.

The odds appear stacked in favor of the creation of a bearish lower high at $10,000 and a fall back to $9,000 in the next day or two.

Buying volumes on the hourly chart have been very low throughout the price bounce from $9,049 to today's high of $10,027.

A low-volume recovery often ends up as a "Dead cat bounce" - a short-lived recovery after a notable price drop - meaning BTC will likely fall back to $9,000.

A break below $9,580 - the low of the doji candle created in the Asian trading hours - would confirm a bearish lower high at $10,000 and allow a drop to $9,000.

The bearish view would be invalidated only if prices invalidate the lower-highs pattern with a high-volume move above $11,080.

Bitcoin image via CoinDeskArchives; charts by Trading View.