Bitcoin

Bitcoin Daily Chart Indicates Crucial Bullish Breakout Towards $10,000

Bitcoin is rising steadily and it recently broke the $ 9,400 resistance against the US Dollar. BTC’s daily chart suggests that the bulls are likely aiming a larger rally towards $ 10,000.

  • Bitcoin formed a strong support base near $ 9,000 and recently started a fresh increase.
  • The price is currently trading well above the $ 9,200 support and the 100-day simple moving average.
  • There was a break above a crucial bearish trend line with resistance near $ 9,350 on the daily chart of the BTC/USD pair (data feed from Kraken).
  • The pair could correct lower, but it seems like the bulls are likely to aim a test of $ 9,800 or $ 10,000.

Bitcoin Price Could Rally To $ 10,000

After a minor decline below the $ 9,000 level, bitcoin price found support at $ 8,800 against the US Dollar. BTC remained well bid above the $ 8,800 level and the 100-day simple moving average.

As a result, a fresh increase was initiated and the price broke a few important hurdles near $ 9,000, $ 9,300 and $ 9,400 (as discussed in yesterday’s analysis). There was a break above the 23.6% Fib retracement level of the key downward move from the $ 10,376 swing high to $ 8,802 low.

More importantly, there was a break above a crucial bearish trend line with resistance near $ 9,350 on the daily chart of the BTC/USD pair. This is a positive sign and suggests that the bulls are taking control above $ 9,300.

Bitcoin

Bitcoin price breaks $ 9,400: Source: TradingView.com

An initial resistance on the upside is near $ 9,580 and $ 9,600. It is close to the 50% Fib retracement level of the key downward move from the $ 10,376 swing high to $ 8,802 low. A successful break above the $ 9,600 level could open the doors for a larger upward move towards the $ 10,000 resistance in the coming days.

Chances of Downside Correction?

In the short-term, bitcoin might correct lower towards the broken bearish trend line at $ 9,320 or $ 9,300. If there is a bearish break below the $ 9,300 level, the price might find support near $ 9,200.

Any further losses may perhaps push the price towards the $ 8,800 support or the 100-day simple moving average, which holds the key for a larger breakdown. A close below $ 8,800 and $ 8,650 might start a strong decline towards $ 8,000 or $ 7,800 in the near term.

Technical indicators:

Daily MACD – The MACD is currently gaining momentum in the bullish zone.

Daily RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

Major Support Levels – $ 9,300 followed by $ 8,800.

Major Resistance Levels – $ 9,580, $ 10,000 and $ 10,300.

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Bitcoin – NewsBTC

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