Trading Bitcoin: Rejected at $10k, Time to Buy the Dip?

After a weekend of fireworks, Bitcoin has come down to support at $9.8k. As you can see on the hourly chart above, Bitcoin has found support at the 128MA (green).

Daily

After breaking above $10k, Bitcoin was rejected down to our current price level of $9.8k. We have now reached a green 6 on the daily chart. Therefore, Bitcoin may experience a correction or a large move in three days. Also, the RSI was rejected from an overbought level, however, the bullish divergence formed throughout the past weeks is still strong.

Weekly

Today is Monday and the trend has given us a new weekly candle. After breaking above the 0.618 fibonacci level, the macro trend is forming support and looking bullish for the remaining three weeks.

BitMEX Funding and Premium Index

The funding and premium index above is a metric which measures whether the market is net short or long. From the chart above, we can see that the market is net long. Many like to use this metric as a counter-indicator since the majority is often wrong, being said, this index can remain overextended for significant periods of time.

Crypto Fear and Greed Index

The crypto fear and greed index has now flipped into greedy territory following our move to $10.1k.

Conclusion

After breaking above $10k, Bitcoin bulls are still strong, pushing price back up to $9.9k during the writing of this article. While a small rejection occurred at $10.1k, there’s no significant technical reason to be bearish at present time. Current support remains at $9.8k while current resistance stands at $10.2k.

Disclaimer: The author of the article hodls Bitcoin.