Earlier in the week, we reported that Bitcoin prices had fallen back to below $10k after only a few days above $10k. And a few hours ago, after a healthy consolidation, the flagship crypto has bounced back to above $10k.
Bitcoin was held up for two days in a row in a 26 period EMA up until yesterday. In the past 24 hours alone, we have seen a significant 5% price increase, consequently breaking the 12-period EMA and confirming a 4-hour uptrend.
The move in the crypto market corresponds to Gold move where XAU/USD shot above $1,600. BTC now finds support at $10,090 level, corresponding to a 61.8% retracement level. The price has also managed to stay above 200 MA in the hourly time frame. While the prices remain above these levels, there is no reason for the bulls to worry.
The bulls have managed to break several 4-hour resistances and the 12 and 26-period EMAs are now bullish again. On the other hand, the RSI is not overextended, meaning the bulls have enough momentum to break the new resistance at $10,250.
There is also reason to believe a bullish momentum is forming on the daily chart. The RSI divergence formed where Bitcoin broke from $9,093 to $9,452 and RSI dropped at the same time from 61 points to 53. This is a possible sign that the bulls have lots of momentum and may see a break of the $10,500 high.
In The Unlikely Scenario…
In the unlikely scenario that the price falls short and the $10,500 price is rejected, the bulls will form a lower high, creating a daily equilibrium pattern in favor of BTC. For the bulls to be concerned, bears would need a significant continuation after breaking below $9,452.
If BTC prices lose the daily uptrend, we will zoom out to the weekly chart that is in a very strong uptrend. Anything that is above $8,238 would be a higher low. That means that even if bears would be breaking the $9,000, the bulls would still be comfortable in a weekly trend that needs consolidation.
Strong Monthly Chart For BTC
The monthly chart looks strong for BTC, trading above EMA which looks bullishly crossed and facing resistance on the upside.
Bitcoin’s dominance continues to drop and is at 62% at the moment from 66% registered two weeks ago. It doesn’t have to mean that BTC is losing strength, rather, the altcoins are strengthening.
Meanwhile, ETH/USD chart suggests a possible retracement in the future. Ethereum might decline the trend line support in the days and weeks coming and possibly resume the uptrend thereafter.