Trading Bitcoin: $10k Next Target?

$10k Next Target?

After last week’s wild ride, Bitcoin is consolidating above the $9k support level. On the 4 hour chart above, we can see a clear bearish divergence in the RSI. The bulls need to create a higher high on the RSI to continue their momentum. Additionally, the sequential indicator experienced a price flip to a bullish green 1 candle. However, the Lucid SAR (blue x) is acting as resistance above price. The 4 hour chart is neutral at present time.

Daily

The daily chart is now in a bullish posture and is trading on a green 5 candle. Therefore, if the bulls can hold support above $9k, bullish momentum is likely to continue.

Weekly

On the weekly chart, Bitcoin is now on a green 2. In sequential theory, a green 2 which closes above a green 1 is a bullish signal. However, price has not been able to do this yet. While it is only Tuesday, the current weekly candle is on a green 2 and has the body of a doij candle. A doji is typically characteristic of a trend change. That said, it’s only Tuesday.

Conclusion

The bulls are back! If Bitcoin can hold support at $9.2k then a bullish retest of $10k is in the cards. If the bulls cannot hold $9.2k, look for a possible retest of the $8.7k support level.

Disclaimer: The author of the article owns Bitcoin.