Bitcoin’s price has been trading between $9,900 and $10,200 since plunging from a recent high of $12,025 last week.
The support at $9,900 has been strong both times it was tested, and this led some traders to believe a short-term bull scenario is more likely.
Of course, a big drop is nothing new to the leading cryptocurrency, and the 12% drop last week is nothing compared to the severe drop back in March.
But what is the outlook for Bitcoin? And is it time to buy the dip?
Bitcoin Technical Analysis
At the time of writing, Bitcoin is trading at $10,356, and the upswing has occurred after a subtle double-bottom pattern in the hourly range.
The initial bottom was formed during BTC’s breakdown to levels under $10,000 where it found support at $9,900 on September 5, whereas the second bottom was formed a couple of days later.
The recovery from the double bottom doesn’t appear to have much momentum, however, as resistance has been formed at $10,400 and $10,600.
But if we can break these resistance levels there’s no reason to doubt we would break $11,000.
If Bitcoin fails to hold support above $9,900 we could see further significant drops, however.
Read More at Bitcoin Maximalist