Bitcoin Shows Strength Above $10,000After bouncing back to $10,000, Bitcoin is now showing strength and gearing up for possibly a run toward $10,500. For the past few hours, BTC has been testing a resistance point of $10,175, and once that breaks, $10,500 would be next. A major bullish trend line has been formed after holding down support at $9,750. A new support level of $10,000 was established later, and the cryptocurrency was able to show enough strength to maintain above that level at the moment. For investors worried about pullbacks, the ones that have occurred have been small compared to the gains we saw this week, during which BTC went up by almost 17%.
Source: TradingviewOn the technical side, bullish signs are evident from the MACD and RSI indicators. There is a crossover forming around the zero line in the MACD graph, while the RSI score shows further upside for BTC as well in the short run. However, candlestick patterns are indicating a bearish reversal, so investors still need to monitor the price movements in the next hour as BTC could still revisit the sub-$10,000 level. The good news is that no major selloffs are expected anytime soon.
Two possible scenarios are on the cards:
- A bounce up from the $10,100 level into another bullish territory
- The $10,000 support fails to hold and BTC drops back down toward $9,900
Looking at the technical indicators:
- Hourly MACD — Bullish signal as indicated by the MACD and signal line crossover
- RSI — Short-term upside still present for BTC
- Major Support Level — $10,000
- Major Resistance Level — $10,175