Bitcoin Bullish Trend continues on the way to reach $10,000 in the coming days. The price may correct along the way towards $10,000 price area. Lets check Bitcoin Technical Analysis for more levels and insights.
January 31, 2020 | AtoZMarkets.com – Bitcoin managed to reach $9500 area with strong Bullish momentum. Bitcoin is currently residing below $9400 area after strong rejection off the $9500 resistance area. The price has been quite consistent with the recent Bullish Momentum while carried by the dynamic levels along the way. Moreover, current Bearish intervention was quite as expected.
Bitcoin Bullish Rally has been quite impressive with non-volatile momentum. Bitcoin reached $9500 and showed certain Bearish pressure off the level. The price sustained the Bullish trend momentum as the rise of Coronavirus started to affect global trade and commerce. Bitcoin is currently considered as an emerging safe haven apart from Gold.
The upward move above $9500 recently pushed the market cap above $173 Billion. Since last 7 days Bitcoin managed to gain 13.72%. Though certain correction and Bearish pressure is currently seen, but the Bullish Bias may sustain and reach $10,000 area in the coming days.
Bitcoin to Reach $10,000 as $9500 Resistance Breaks
Bitcoin is still non-volatile and quite impulsive with the Bullish trend momentum. After the bounce off the Channel resistance as support recently, the Bullish trend established is stronger than expected. Bitcoin took less time to reach $9500 area after bouncing off the $8200 area. The move higher of about $1300 took only 26 days.
image: Bitcoin 4 Hour chart
According to Bitcoin 4 Hour chart, the price formed Bearish Continuous Divergence while pushing higher above $9000 area. Though the price is closely carried by 20 EMA, certain Bearish pressure can lead to further correction and retracement along the way.
MACD lines are currently having a Bearish cross while having confluence of MACD Histogram Bearish Divergence. Currently, the price is above the dynamic levels and certain deep throwback can occur towards $9200 area. As per current price action scenario, as the price remains above $9000 area with a daily close, the pre-breakout carry will continue.
Bitcoin Bullish Trend can Continue above $10,000?
image: Bitcoin Daily Chart
According to Daily Chart, Bitcoin has recently formed Bearish Continuous Divergence after breaking above the Channel resistance. The price recently reached the most expected price level of $9500. As per current price action formation, the price may reach $10,000 area as well but may struggle to break above it. The resistance between $9500 to $10,000 may prove again to be the strongest price area.
Looking at previous price actions around the resistance area between $9500 to $10,000 area, price reaction zone can be spotted. The price did manage to break above the Kumo Cloud while Dynamic levels like 20 EMA, Tenkan and Kijun line is supportingthe Bullish carry. Despite the Bullish confluence in place, certain Bearish pressure may occur as the price resides below $10,000 area before breaking above it to push further upwards.
To conclude, Bitcoin reaching $10,000 area may embark Bearish pressure leading the price lower for certain period before breaking above and continue the Bullish trend.