21 hours ago | Anthony Joseph
Key Highlights:
- Historic Bitcoin trend still intact
- $9,200 – $9,600 is the last stand for bears
- We could see a short term selloff before another move up
| ⠀Bitcoin price: | $9,410 |
|---|---|
| ⠀Key BTC resistance levels: | $9,600, $10,000 |
| ⠀Key BTC support levels: | $9,200, $9,000 |
*Price at the time of writing
All eyes are on the market leader for confirmation at this critical level. Wherever you look, bullish sentiment is sure to be there, mixed with a slight tinge of disbelief. It’s understandable to be cautious, even after the massive price movements lately on Bitcoin and some high cap alts. It’s certainly time to pay attention in crypto, as we may be facing absolute confirmation of a bull trend change soon.
How to buy Bitcoin (BTC) on Binance?
Bitcoin price short-term prediction: Bearish
This current zone is of utmost importance to Bitcoin, which is precisely why we have been trending this range for the last few days. The $10k level is possibly the most significant psychological marker for Bitcoin since 2017. A solid weekly or monthly candle clearing 10k would be too bullish for even the most skeptical traders to ignore. The range between $9.2k and $9.6k is last stand territory for bears, though there doesn’t seem to be many bears around. Even the publicly pro bitcoin head of Twitter, Jack Dorsey, seems to be in bullish spirits as he just added a new Bitcoin emoji for Twitter. Users, in turn, are making the “#Bitcoin” trend on the platform, adding an extra bit of fuel to the fire.
On the hourly chart, Bitcoin has been forming a clear diamond formation for the last few days. This pattern normally signifies a bearish move when found at the top of an uptrend. As shown with the arrow, Bitcoin experienced a pull to the downside that was quickly eaten up by dip-buyers but not before making a low outside the diamond. This coupled with the receding volume on green candles means we could be looking at a dip to the $8,000s in the short term.
Ultimately, I feel a short term pullback is due before crossing over the $10k mark. This is necessary to build up support and draw in more shorters before another leg up. If BTC was to pull a fast move and breakthrough $10k immediately, we could perceive it as a potential move to wipe out shorts and bring FOMO longs before an unfortunate move back to the downside after a long wick candle. Conversely, if we have a slight pullback, we could gather more momentum, and eventually break through resistance before building support above $10k, ultimately signaling a full trend change to a bull market.
Bitcoin price long-term prediction: Bullish
After this large move out of the bearish channel, most traders are looking for more upside with BTC. With the upcoming BTC halving on the horizon, most speculators are buying every dip before the upcoming event. While the period immediately after the halving could see a selloff, it’s hard to believe the run-up to the halving date is priced in. This coupled with bullish news and advancements being released weekly for BTC and other high cap alts, it’s an exciting time to be in crypto.
The weekly chart shows a clear picture of where the market wants to take BTC. We are currently at a resistance level that goes back as far as April 2018. This is a major resistance level for BTC with several points where it touches and is then rejected. Also, sitting around the always important $10k mark makes this level very formidable and strong.
The last few weeks have seen BTC following a parabolic curve up to the current resistance. Fast moving averages like the 9 or 21 period MA have already crossed above the 200 MA on the daily, and on the weekly, the 9 MA is crossing over the 50, all signifying more bullish momentum.
If BTC decides to break through this level, we should see some major bullish price action across the board for the entire crypto market. This would be an undeniable signal of a bull market underway, and with the halving in the very near future, it seems going long on BTC around this time would be a respectable move.
Historic Trend is Intact
When referring to the decade long history of Bitcoin’s highs and lows, you can see we are still very much following the same pattern. The long term trend never broke at any moment, and this current bullish reversal we experienced at the $7k mark plays into this. When the long term scope, coupled with moving averages suggests that the bottom is in, its hard to deny the best days must still be ahead for Bitcoin.
Chart credit to Peter Brandt
Alternative Bitcoin price analysis
Popular trader Kevin Svenson also suggests that we could be due for a short term pullback, but ultimately should be expecting a break of $10k and a continuation towards ATHs in the near future. Bitcoin staying above $9.1k is crucial for bulls to be in control, and as we are ranging around $9.4k, there is still potential to forgo any pullback and instead cleanly break $10k. Keep your eyes on the market leader BTC as there should be a breakout north or south in the coming days.
Previous BTC analysis
At CoinCodex, we regularly publish price analysis articles focused on the top cryptocurrencies. Here’s 3 of our most recent articles about the price of Bitcoin:
