Bitcoin Highly Bullish Despite Selloff; Here’s What Could Propel it to $11,000
This past week, bitcoin maintained a bullish bias above the $10,300 area against the US Dollar. BTC price extended its rally towards the $10,500 level and settled above the 100 simple moving average (4-hours).
Finally, the price traded to a new 2020 high at $10,507 before starting a downside correction. It seems like the price made a couple of attempts to gain pace above $10,500, but the bulls failed.
As a result, there was a bearish reaction below the $10,400 and $10,300 levels. Besides, the price declined below the $10,200 support area. More importantly, there was a spike below the $10,000 support area.
However, bitcoin found a strong support near $9,800 (the last breakout zone) along with the 100 simple moving average (4-hours). A swing low is formed near $9,764 and the price is currently rising.
Additionally, there is a key bullish trend line forming with support near $9,800 on the 4-hours chart of the BTC/USD pair. It is now trading above the 23.6% Fib retracement level of the recent correction from the $10,507 high to $9,764 low.
On the upside, an initial hurdle for the bulls is near the $10,140 level. It coincides with the 50% Fib retracement level of the recent correction from the $10,507 high to $9,764 low.
Therefore, a clear break above the $10,140 and $10,200 levels could open the doors for a larger upward move in the coming sessions. In the mentioned case, the bulls may perhaps eye a break above $10,500 and a test of the $11,000 area.
On the downside, the $9,800 support and the 100 simple moving average (4-hours) hold the key. If there is a daily close below the $9,800 support, bitcoin price may even struggle to stay above the $9,500 support.
In the mentioned bearish case, the price is likely to extend its downside correction towards the $9,000 support area.