- Bitcoin price settles above both the Ichimoku Cloud and the 200-day SMA as bulls push strongly towards $10,000.
- Bitcoin is slightly overbought and could retreat slightly to create fresh demand before attacking the $10,000 level.
Bitcoin price charts are sending out the strongest bullish signals as far as technical analysis is concerned. An earlier attempt to advance towards $10,000 failed to clear the resistance at $9,900. Bitcoin retreated almost immediately only to find support at $9,700. As discussed earlier, support at $9,700 remains the key stepping stop Bitcoin is using in the journey to rise above $10,000.
BTC/USD daily chart
At the time of writing, Bitcoin has scaled the resistance at $9,800. The bullish action seems strong enough to clear the already tested hurdle at $9,900. The biggest bullish signal is that Bitcoin price is above the Ichimoku Cloud and the moving averages of the indicator are moving in the direction of the price. This means that the ongoing uptrend is strong enough to clear most of the resistance towards $10,000.
However, the traders must not ignore the fact that the Relative Strength Index (RSI) is at 80, and therefore, quite overbought. In other words, there is a possibility that Bitcoin could reverse back to levels at $9,700 or even $9,600 before making the final lap above $10,000.
In that case, several other support areas come into the picture, as presented by the Ichimoku Cloud and they include, $9,464, $9,246 and $8,156. On the brighter side, as long as the price remains above the 200-day SMA, Bitcoin bulls will continue to hold the mantle and sit at the driver’s seat.
Bitcoin Technical Levels
Support: $9,700, $9,4464 and $9,246
Resistance: $9,900 and $10,000
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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