After weeks of consolidation the Bitcoin price is starting to show strength again after it broke through key resistance and now $10k is looking likely again.
After steadily dropping down from a July 9 local high of $9450 to around $9,100 earlier this week, where it met strong support again, the price of Bitcoin (BTC) has rallied yet again with a price at time of writing $9650.
Bitcoin Looking Bullish As $10k In Reach Again
The last couple of months have been a relatively quiet period for Bitcoin, as the overall market trend hasn’t broken out of its range since the Bitcoin halving in May.
With support around $8,900, and the next levels of resistance up lays between $9,900 and $10,300, positive sentiment seems much more likely to catalyst a move towards that than a drop back down to support.
Bitcoin Price Holds Key Support Level
As we can see in the 1 day chart below, the support around $8,900 was tested yet again, and because it’s the second time in the last few weeks we’ve bounced from there, the outlook is much more bullish.
This is down to the upward trend structure, created by the BTC price making higher lows, and as long as this remains intact, it’s a bullish signal.
If the Bitcoin price fell through the support trend and made a lower low, it would likely trigger a sell off and we would accelerate downward, which would see another test of the $8,900 support.
Because the Bitcoin price bounced after holding the crucial support, however, the ascending triangle construction remains intact.
And as we see with the 100 and 200 MAs are both below the current Bitcoin price, and again: as long as this remains we remain in bullish territory. This only reinforces the likelihood of testing support and breaking through the $10k psychological barrier yet again.
Looking at the 4hr chart, we can see the big candle that broke through the $9,200 resistance, which triggered the surge up to today’s level.
And it appears like the price is taking a breather at the previously untested $9,600 level, where I am bullish the Bitcoin price will rise and test the next resistance.
With a bit of resistance between $9,900 and $10,200, what is most likely to play out is a “staircase pattern”
For this to play out we would likely see Bitcoin rejected at resistance around $9,900, before attempting again and breaking through.
It would then use $9,900 as support as it tries to break through the next resistance at $10,100, and if it breaks through resistance there, we could see an accelerated surge toward the $10,300 mark.
Bitcoin Looking Likely To Take $10k Again
Short term price movements are never easy, but with lots of positive news surrounding Bitcoin, and support tested twice, and lower lows forming an ascending triangle, I think $10k is within reach.
The ascending triangle that’s forming shows it could take up to a couple of weeks before breaking out, but that plays into the mid-term price analysis.
Bitcoin is likely to steadily keep climbing in the coming months, before we begin to see some bigger major moves in 2021.
Author: Pablo Clarke
How much should I invest in Bitcoin?
Bitcoin is a new technology, and an asset that is finding its value. It has great potential, but the price is volatile, so investing in it should only be for those who understand it and have faith in it. And only invest as much as you can afford to lose.
Can you buy less than 1 Bitcoin?
Yes. Every Bitcoin can broken down into 100 million bits. They are known as satoshis, after the pseudonymous creator Satoshi Nakamoto. And some companies will let you buy as little as $1 worth of Bitcoin, which at time of writing is worth about 11,000 satoshis.
What is Bitcoin resistance?
In technical analysis, large round numbers are defined as “psychological resistance levels,” like $10,000 for bitcoin. Historical resistance levels are price points that have in the past acted as support or resistance.
Can I get free Bitcoin?
Nothing is really free, because even when you earn free Bitcoins you’re giving up your time, which is precious. But you can earn free Bitcoins. If you are a gamer, there are games like Bitcoin Bounty Hunt which allows you to shoot your way to Bitcoin riches. Or you can save your Bitcoin in an interest bearing account and earn some BTC interest. Be careful with these, and only go with legitimate companies, though.