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


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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

 

Author: John Isige
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige
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John Isige 675 Articles
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige
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