Bitcoin Just Broke To The Bullish Side: Is $10,000 The Next Target? Bitcoin (BTC) Price Analysis

Since reaching $9,950 three days ago, Bitcoin was forming a dangerous bearish triangle on the 4-hour chart, as could be seen on the following chart.

Bearish triangles usually break to the downside. However, Bitcoin just broke above, indicating a massive $500 surge (as of writing these lines) from the current daily bottom below $9K.

Again, the majority proved to be wrong, following bearish sentiment among the crypto traders.

As of now, Bitcoin looks healthy after invalidating the bearish triangle pattern as well as closing the CME open gap from the $8900 level.

Total Market Cap: $248.4 billion

Bitcoin Market Cap: $168.4 billion

BTC Dominance Index: 67.7%

*Data by CoinGecko

Key Levels to Watch

– Support/Resistance: As of writing this update, the current daily high is around $9,440, which is a robust previous resistance area. This area is the 2019 mini-triangle’s lower boundary from the past month of September.

In case of a break-up, Bitcoin next serious resistance area along with demand (as can be seen on the chart by the VPVR – attached to the right side), is the $10,000 level. Further above lies $10,300 – $10,400 (Saturday’s high). Higher targets are $10,600 and $11,000 (significant resistance).

From below, the first level of support is the good old $9200, along with the breakout area. Further below is the $8900 – $9000, including strong resistance (which held the current price level nicely). The next level of possible support is the Golden Fibonacci, 61.8%, roughly around $8500, followed by $8400.

– The RSI Indicator (Daily): Since the last week’s huge price surge (42% daily surge last Saturday), the RSI is showing a bit of bearishness, creating lower lows pattern. It will be interesting to see if the current support level of 55-56 can hold the indicator bullish. Stochastic RSI also tends to the bearish side, following a cross-over in the overbought territory. However, the oscillator hadn’t yet entered the bearish territory.

– The Trading Volume: Since Saturday, the volume is declining, anticipating the next move. The volume is still above the average level of the past month.

BTC/USD BitStamp 4-Hour Chart

BTC/USD BitStamp 1-Day Chart

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