Bitcoin Price Analysis: BTC/USD Shoots Towards $10,400 But Pullbacks Seem Imminent
- Bitcoin revives the bullish momentum on breaking above $10,200 resistance.
- Bitcoin enjoys the bullish action but a rising wedge pattern threatens to force a reversal in the near term.
Bitcoin is logging form new 2020 highs following a compelling return above $10,000. The largest cryptocurrency price is setting the pace for the altcoins as it busks in the bullish ‘sunrays.’ As discussed in the previous analysis, price pullbacks are necessary for a bullish market. They ensure that the asset creates more demand by allowing more people to enter the market at a relatively lower price, otherwise referred to as buying the ‘dip.’
Bitcoin’s recent pullback to the support at $9,700 was necessary for the bullish action taking place at the moment. Not only is Bitcoin back in the bullish zone above $10,000, but it has also logged in new yearly highs of $10,355. Following an adjustment, BTC/USD is teetering at $10,317.
The persuasive move above $10,000 and the resistance at $10,2000 appears to have woken the slumbering bulls. The main focus is to pull Bitcoin above the next hurdle at $10,400, which is expected to make another persuasive breakout in the direction of $11,000.
BTC/USD 4-hour chart
Meanwhile, technical levels are positively intact for a bull rally. The RSI, in this case, is almost breaking above 80. The move follows a correction from the recent dip to 40. Continued movement north could allow for more buying entries in the short term.
On the other hand, traders must be aware that Bitcoin is heading in overbought conditions. This means that reversal is possible in the near term. Besides, the formation of a rising wedge pattern signals an impending reversal especially if resistance at $10,400 is not cleared.
Bitcoin Key Levels
Spot rate: 10,326
Relative change: 56
Percentage change: 0.53%
Trend: Bullish
Support: $10,200, $10,000 and $9,700
Resistance: $10,355, $10,400
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