Bitcoin Reaches Yearly High, Eyeing $10,000
Top trader still expects heavy resistance, however.
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Bitcoin just reached a new yearly high of $9,860 signaling a further advance to $10,000.
Bitcoin Is Testing New High
Demand for the flagship cryptocurrency appears to be on the rise as it recently broke out of a no-trade zone where it has been consolidating since Jan. 29.
Since then, BTC was mostly trading within a narrow trading range defined by the $9,260 support level and the $9,521 resistance level, based on its 4-hour chart.
The spike in interest invalidated a sell signal presented by the TD sequential indicator in the form of a green nine candlestick. This bearish formation was disregarded the moment the price of BTC moved above the green nine candlestick.
Now, this technical index estimates that a green two candlestick trading above the current green one candle could present a buying opportunity. If confirmed, BTC could begin a new bullish countdown all the way up to a green nine candlestick.
The Fibonacci retracement indicator estimates that on its way up Bitcoin could find significant resistance at $10,000.
Breaking above this major price hurdle could trigger a further advance to the next level of resistance presented by the 127.2% Fibonacci retracement level. This barrier sits at $10.485.
According to Peter Brand, a 45-years trading veteran, once Bitcoin reaches roughly$10,400 its going “to start running into significant resistance.” Failing to break above this price level would likely trigger a correction before BTC continues its bullish trend.
Brandt pointed out that this target is measured by drawing a parallel line “equal to the distance of the height of [the] channel” that developed from late June 2019 to mid-January 2020.
Although the buying pressure behind Bitcoin seems significant enough to push it above $10,000, a downturn in the market could happen at any minute.
Therefore, investors must be aware that a sudden plunge below $9,630 could trigger a steeper correction at the 78.6% or 61.8% Fibonacci retracement level. These levels of support sit at $8,950 and $8,500, respectively.