Bitcoin [BTC] Price Analysis: All Eyes on $10k – Correction to $14k Lingers

  • Bitcoin lays the groundworks for re-entering $10,000 as investors start fantasizing with $15,000.
  • Bitcoin is bound to refresh interest among the investors and the traders on breaking above $10,000.

BTC/USD appreciated in value significantly on Thursday and Friday this week. A break occurred above $9,500 which opened the way for further movement stepping above $9,900 for the first time since May 2018. Besides, Bitcoin formed a new yearly high at $9,932 before the current retracement took over.

BTC/USD 1-h chart

Bitcoin price chart
Chart source: Tradingview

Bitcoin investors’ interest has been revamped. The gains are supported by the 61.8% Fib retracement level taken between the last drop from $9,932.94 to a low of $7,501.14 at $9,000. Before, the surge Bitcoin was in lock-step trading between $9,400 to the upside and $9,000 on the downside.

Since the declines in the first week of June found support around $7,500, BTC/USD formed a higher low pattern above the key trendline as observed on the hourly chart. The current correction from the new yearly highs is likely to run into support at $9,700, the trendline and the 100 Simple Moving Average (SMA) 1-h.

Further downside correction will be supported at the above mentioned 61.8% Fib retracement level. The buyers must fight to ensure that Bitcoin stays above $9,000 otherwise continued movement could test $8,500 and $8,000 respectively.

On the upside, the current technical picture shows that the price is still poised for a correction up. The RSI has retreated from levels above 70 but ranges at 63 (well above the average) ignorant of the reversal and overbought levels. The MACD hit highs of +135, though this level is still below the weekends +152.

The indicator currently at +126 divergence is decreased as an indication of reducing buying power. However, Bitcoin is bound to refresh interest among the investors and the traders on breaking above $10,000; a move that could propel it to $14,000 and $15,000 as predicted by Tyler the co-founder of Gemini exchange.

Bitcoin Key Technical Indicators

MACD divergence: Suggests decreasing buying power.

RSI: Above average levels suggest the potential for growth.

Key Hurdle: $10,000

Key support: 61.8% Fibo

 

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