- Bitcoin (BTC) looks poised to break over the $10k level
- A break over the $10k level could initiate a strong rally to $10,650
- Bitcoin has several support levels on the downside
Bitcoin News Today – The price of Bitcoin (BTC) is surging gradually over the $9,500 and $9,750 levels against the U.S. dollar. The digital currency looks poised to break over the $10k level and start a strong rally towards $10,400 and $10,650.
Bitcoin Looks Poised to Break over $10k and Start a Strong Rally Upwards
Over the past few trading sessions, there has been a steady increase in the price of Bitcoin (BTC) over the $9,500 hurdle point against the US dollar. The digital currency even broke over the $9,700 mark, with a convincing close over the 100 hourly simple moving average. Finally, the world’s largest digital currency by market cap broke over the $9,800 mark and tested a new 2020 high at $9,850.
The digital currency is currently consolidating gains over the $9,700 support zone. The last swing low was close to the $9,656 level and the high was close to the $9,836 mark. BTC corrected below the 23.6 percent Fibonacci retracement level of the previous swing from the low of $9,656 to the high of $9,836.
Bitcoin (BTC) Price Today – BTC / USD
Nevertheless, the bulls showed up and held gains over the $9,750 zone. More importantly, there was a formation of a key rising channel with support close to the $9,710 mark on the hourly chart of Bitcoin against the US dollar. On the upside, there are near term resistances close to the $9,850 and $9,880 marks.
The present structure of the coin suggests that the price is getting ready for a major upside break over the $10k resistance level. If the digital currency breaks over the $10k level successfully, it could initiate a strong rally and a stop loss hunt. If that happens, the digital currency is likely to surge higher and break over $10,400 or even the $10,500 mark in the coming sessions.
Bitcoin Has Several Strong Supports on the Downside
The immediate support of the digital currency is at the $9,700 mark. In addition, the 50 percent Fibonacci retracement level of the previous swing from the low of $9,656 to the high of $8,836 is at $9,746. If the digital currency breaks below that support level, it might correct further towards the $9,600 support level.
However, the major support of Bitcoin (BTC) on the downside is close to the $9,520 and $9,500 marks. Below those levels, there is likely to be a near term trend change to bearish. However, the bulls seem to be in charge, and the digital currency is more likely to continue its uptrend than to break below its major support level.