- Investors interest was at its peak with Bitcoin forming a new yearly high at $13,878.
- Bitcoin is poised for an upward move in the coming sessions on Friday.
Bitcoin’s break above $10,000 is said to have been fueled by the groundbreaking announcement of Facebook’s cryptocurrency Libra. Many including the CEO of Galaxy Digital Holdings Mike Novogratz believe that the entrance of multinationals like Facebook into the crypto space is not only boosting the prices but opening up Bitcoin and other digital assets to the mainstream.
BTC/USD 1-h chart
Meanwhile, the drop to $10,300 was arguably devastating, to say the least. Investors interest was at its peak with Bitcoin forming a new yearly high at $13,878. Correction to $15,000 was the next rendezvous before Bitcoin plummeted below several key levels including the 61.8% Fib retracement level taken between the last drop from $13,878 to a low of $10,302 support at $12,500, $11,500 as well as $10,500. Although the increasing bear pressure pushed BTC/USD under $10,500, the bulls fought to find balance at $10,300.
A reversal has since occurred from the new weekly low, however, no headway was made on breaking past $12,000 hurdle. Bitcoin dived sharply to the support at $11,500 giving way for a correction to the current $11,700.
A break above the formed bullish flag pattern could propel the price above $12,000 once again and give it a kick towards $13,000. Besides, technical levels are very intact at press time. The relative strength index (RSI) already recovered from the oversold and is pointing north above the average. The divergence seen with the Moving Average Convergence Divergence (MACD) is a key indicator that Bitcoin is poised for an upward move in the coming sessions on Friday. Similarly, if Bitcoin continues with its trend over the weekends, we could see further correction towards the yearly highs.
Bitcoin Key Technical Indicators
Key Support Areas: $10,300 and $9,000.
Key hurdles: $12,000 and $13,878.
MACD 1-h: Increasing divergence points towards impending breakout.
RSI: Staying above the average as buyers regain confidence in the recovery.
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