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After a pleasant weekly close, Bitcoin (BTC) bulls turned up Monday prepared to push the price to the $9K mark and possibly above. Over the weekend numerous crypto analysts suggested that if the price sustained above the $8,650 resistance Bitcoin would rally to $8,800 to set a daily lower high, consolidate, then make another run at the $9,200 mark.
Bitcoin daily price chart. Source: Coin360
All, except the latter, has come to pass and at the time of writing traders are attempting to push the price through 9,000 but $8,963 has been a sticking point. Purchasing volume continues to rise and the 6-hour timeframe shows the RSI pushing above 72 as bullish momentum continues to rise on the moving average convergence divergence (MACD) histogram.
BTC USD 6-hour chart. Source: TradingView
Neither indicator is in overbought territory and at the moment Chaikin Money Flow (CMF) oscillator has flipped positive above 0 and continues to rise, demonstrating that bulls are continuing to pump funds into Bitcoin.
Experienced traders will recall that when volume sustains throughout a strong upside move, oscillators like the Stoch, RSI, and MACD can become overbought and hold these positions as Bitcoin’s price continues to surge higher. Thus, incorporating other indicators like moving averages, candlestick patterns, and the Bollinger Bands can provide additional valuable insight.
BTC USD daily chart. Source: TradingView
The daily chart shows Bitcoin en-route to setting a new daily higher high slightly above $9,200 and this point also aligns with the upper arm of the Bollinger band indicator. If bulls are successful in pushing the price above $9,230, traders will set $9,500 as the next destination for Bitcoin price.
Above $9,500, $9,600, $9,963 and $10,538 are the next areas that traders will reach for. Looking at Bitcoin’s longer-term market structure on the daily chart, one can see that $9,119.85 is an important level to sustain above. Since July 16, 2019, this level functioned as strong support so if bulls are able to flip this resistance to support it would solidify Bitcoin’s trend reversal and significantly reduce the likelihood that the price will drop below $8,000 in the near future.
$9,119 is also close to the 36.2% Fibonacci retracement level from Bitcon’s June 26 drop from $13,800. Some traders view this Fib level as being nearly as significant as the 61.8% level and the daily chart shows this Bitocin frequently bounced off this level as support for 6 months before dropping below it in September 2019 thus flipping it to resistance.
Over the coming days bulls will fantasize about Bitcoin sustaining above $9,119.85, then pushing its way through the 38.2% Fibonacci retracement at $9,250 as this would set the digital asset up for a well-measured shot at $10,000.
Bitcoin daily price chart. Source: Coin360
The overall cryptocurrency market cap now stands at $245.8 billion and Bitcoin’s dominance rate is 65.9%. As Bitcoin rallied 4.26% a number of the top-20 altcoins followed suit with impressive gains. Bitcoin SV (BSV) rallied 11.32% while EOS and Ethereum Classic (ETC) gained 9.41% and 15.3% respectively.
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