Bitcoin (BTC) cleared resistance: Continuation to $10k?

14 Jun, 2019
by Lourens Pepler
Price Analysis
Bitcoin (BTC) cleared resistance: Continuation to $10k?

This week we have seen Bitcoin performing quite well, with it rising 10% after the Daily momentum bounced off the 50 RSI support. Can we now see a further price continuation, since the daily RSI is now trending back up, or is price overextended and a correction in store? This is our BTC analysis for 13 June 2019.

Highlights:

- BTC above resistance on price and RSI

- Daily showing strength

- 4-hour strong uptrend

Starting off with the daily chart we can see how momentum found support at the 50 RSI, before making a higher low. A higher low on the RSI tells us that buying power is now stronger than selling pressure, therefore it's bullish.

Also plotting our daily trend on RSI, we can see that we still have some room to grow on momentum, and as mentioned in our previous analysis, we believe that the price will reach the near $9000 again as momentum makes its way towards the RSI trend line to test it as resistance.

BTC/USD chart provided by Tradingview

Moving over to a 4-hour chart, we can see that price broke through on both of our resistance lines and is now trading above it. Looking towards RSI, to see if momentum agrees with price, we can see that RSI has also broken past its resistance, the 50 RSI, and is now trading in the high 60’s. That's quite bullish!

If we zoom a bit out and look to past performance of RSI, we are able to spot a similar structure to today that formed in late March. We can see that RSI made a strong uptrend which started at the 30 RSI. That uptrend ended up providing BTC with a 60% increase, rising from $5000 to $8000 in 17days. Since we broke resistance on price and momentum, could indicate that BTC is ready for its continuation to $10000.

BTC/USD chart provided by Tradingview

Looking for possible resistance levels for this price increase, we first have to break through $8300, before we can move on to the next resistance level near $8800. In terms of support we have $8000 below us, and below that $7800 is the next support level.

BTC/USD chart provided by Tradingview

Do you agree that Bitcoin is now back to being bullish and ready to move to $10k, or is this perhaps a bull trap that fuel a dump to $6k? Let us know what you think in the comments below!

Disclaimer: Keep in mind this not investment or trading advice, just the opinion of our analysts. As always, do your own research, make your own decisions.

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