Bitcoin Price Grapples With $10K

Bitcoin bears took their pound of flesh last Wednesday.

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

It was a devastating blow for bulls last week on Wednesday, Feb. 19, as Bitcoin fell by approximately 10% in a single hourly candle.

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.

It's important for Bitcoin to break out of this channel to reclaim a bullish trend.

It did show Bitcoin as being massively overbought in the days leading up the selloff.

Bitcoin bounced off 50.16 on Feb. 20 and changed its trajectory from heading to oversold back up towards the overbought range.

The weekly MACD is still in full bullish flow, and past performance of Bitcoin when the MACD has crossed bullish on the one-week chart has typically led to several months of price increase, while also keeping in mind that we're only one month in.

Given that the price has increased around the same time the difficulty has gone up, it would indicate that the week ahead is unlikely to be bullish or bearish, but rather quite a neutral week of sideways action.

Summary The week ahead for Bitcoin looks to be rather neutral.