Monday, July 27, 2020

Bitcoin Price Holds Strong at $10,000: A Strengthening Case for More Gains



Bitcoin rallied over 4% and it broke the key $10,000 resistance against the US Dollar. BTC is showing a lot of positive signs and it is likely to rise further above $10,200.


  • Bitcoin gained bullish momentum above the $9,800 and $10,000 resistance levels.

  • The price is now holding strong at $10,000 and it is well above the 100 hourly simple moving average.

  • There is a connecting bullish trend line forming with support near $10,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).

  • The pair is likely to continue higher above $10,150 and $10,200 in the near term.

Bitcoin Price Settles Above $10,000


This past week, bitcoin successfully settled above the $10,000 resistance against the US Dollar. BTC extended its rise above the $9,800 resistance and settled well above the 100 hourly simple moving average.


As a result, the bulls gained strength and the price rallied over 4% to break the $10,000 barrier. A new monthly high was formed near $10,199 before the price started a downside correction. It corrected lower more than $250 and tested the $9,800 support zone.


A low is formed near $9,818 and the price is currently rising. It surpassed the $10,000 resistance, and the 50% Fib retracement level of the recent downside correction from the $10,199 high to $9,818 low.


Bitcoin Price


Bitcoin price above $10,000. Source: TradingView.com

There is also a connecting bullish trend line forming with support near $10,000 on the hourly chart of the BTC/USD pair. The pair is currently testing the $10,100 zone, plus the 76.4% Fib retracement level of the recent downside correction from the $10,199 high to $9,818 low.


A successful close above the $10,100 level may perhaps open the doors for a fresh increase in the near term. An initial hurdle is near the $10,200 level, above which the price might climb towards $10,500.


BTC Stable above $10,000


It seems like bitcoin price is holding strong above $10,000. If it declines below the trend line support and the $10,000 support, there are chances of a fresh decrease towards $9,800.


The first major support below $9,800 is near the $9,750. Any further losses may perhaps open the doors for a test of the $9,500 support zone. An intermediate support could be near $9,650 or the 100 hourly simple moving average.


Technical indicators:


Hourly MACD – The MACD is again gaining momentum in the bullish zone.


Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 60 level.


Major Support Levels – $10,000, followed by $9,800.


Major Resistance Levels – $10,100, $10,200 and $10,500.





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