Bitcoin price waiting to surmount the crucial $9,500 but there’s a rapidly forming Bitcoin bull case
Bitcoin price has continued to push higher after a weekend dip. Still, the market’s leading cryptocurrency is still waiting to surpass the critical $ 9,500 level. However, analysts say that there was a case of a rapidly rising Bitcoin price.
The technical outlook of Bitcoin price is starting to support bulls
Until breaking above $ 10.500 or below $ 8.500, Bitcoin is stuck in a macro consolidation. However, analysts say the possibility of cryptocurrencies breaking the ongoing range for price increases is intensifying.
Accordingly, there are five main technical reasons why Bitcoin could advance to $ 10,500, then $ 11,500.
- Bitcoin held the $8,900 resistance, a daily demand zone that has acted as support for the past month.
- BTC is pushing through a diagonal resistance that formed when it hit $10,500 at the start of June.
- Bitcoin is moving above Q2’s volume-weighted average price.
- The one-day relative strength index (RSI) has crossed the midpoint of 50. This is important as the RSI midpoint has acted as an inflection point for Bitcoin’s trends over the past two years.
- The cryptocurrency remains above the 200-day exponential moving average.
— CJ (@IrnCrypt) July 8, 2020
Considering the technical factors, the trader suggested that Bitcoin could test $ 10,500, then $ 11,500 in the coming weeks. However, there are some technical occurrences that could force everyone to change the bias. These include Bitcoin failing to break above $ 10,500 yet again, the RSI falling under 50, and a price drop on an influx of volume.
Elsewhere, analyst Credible Crypto observed that Bitcoin formed a hidden bullish divergence with its three-day RSI. The divergence suggests that the cryptocurrency will surge to $ 10,500 and will only be invalidated if BTC falls under $ 8,800.
Bitcoin relative strength index analysis by trader Credible Crypto | Source: Tradingview.com
While Bitcoin has grown modestly by 5-6% in the past three days, many altcoins have depreciated. Cardano, VeChain, and Dogecoin are among a few dozen cryptocurrencies that have increased by over 30-40% in just the past three days.
Will Bitcoin make the rejection become the key resistance, or will another 40% collapse follow?
Also according to past price action, Bitcoin has been strongly rejected from the middle Bollinger Band line. Bitcoin price is once again trading just beneath the middle line on the Bollinger Bands. In the past, rejection from this key resistance level has resulted in an average of 40% decline.
Bitcoin BTCUSD 3D Bollinger Bands | Source: TradingView
Even more frightening for Bitcoin investors, the asset rejecting at the mid-BB line on the 3-day timeframe the last time around, resulted in Black Thursday. Bitcoin price collapsed by over 50% following that rejection, taking the rest of the crypto market down with it. It also kicked off a correlation with the stock market that hasn’t boded well for cryptocurrencies.
Another 40% rejection from here, would take Bitcoin price back to as low as $5,600, where support must hold.
You can also check Bitcoin Price here.
- Tata Consultancy Services Launching A Cryptocurrency Trading Solution For Banks To Invest In Cryptocurrencies
- Bitcoin Price Is Looking To Leap Key Resistance Alongside Gold Has Jumped To A Nine-Year High