Two Key Metrics Suggest Bitcoin Price Is Back on the Path to $10,000
Bitcoin (BTC) price lit up today, rallying v.78% to a daily high of $9,398 before pulling back to consolidate in the $9,300 range. The strong upside move pushed the top ranked digital asset on CoinMarketCap through the $8,800–$8,930 resistance zone.
Since the halving 24-hour interval correction dropped the price to $8,122, Bitcoin price has recovered 14.48%, leading traders to now wait for $ix,200 to serve every bit support.
Crypto market weekly price chart. Source: Coin360
Equally Bitcoin slowly works its style back toward $x,000, the $9,300–$nine,400 zone could be a sticking indicate where resistance will provoke a retest of former levels of resistance at $9,200 and $9,061, where the 78.6% Fibonacci Retracement is located.
BTC USDT one-60 minutes chart. Source: TradingView
In the hourly time frame, the Bitcoin cost appears to be forming a bull flag, as the flagpole was established on a high volume surge and the electric current consolidation is accompanied by decreasing trading volume.
Over the coming hours, the cost looks similar it volition continue consolidating in the $9,260–$9,334 zone where there is a VPVR high volume node, which is also aligned with the base of operations of the flag. The descending trendline from the May 7 high at $10,070 remains overhead, and twice during today's session the price met resistance at the trendline.
Today's rally as well brought the cost above the ascending channel, and throughout the day, the price has plant back up forth the tiptop of the channel. A drop below $nine,300 places the price dorsum in the channel and increases the likelihood of the price dropping to the 20-MA at $9,180.
If bulls are able to push the price above the $9,400 level, traders will target $9,750 as the next destination.
Investor conviction continues to ameliorate
As reported this week by Cointelegraph, Bitcoin's rapid 14.48% recovery from $8,122 was accompanied by a sharp drop in the digital asset's implied volatility.
According to Cointelegraph contributor Marcel Pechman, the drop in implied volatility simply illustrates a scenario in which "traders anticipated that the cost would either rally or dump during and later on the event, thus the short term spike."
Pechman further explained:
Unsaid volatility reaching peak levels means options markets premiums spiked. This should be interpreted as the market charging higher for insurance, and it goes both means for calls (bullish) and puts (bearish) options.
BTC USDT 1-hour nautical chart. Source: TradingView
Now that the halving has passed, the whipsaw volatility witnessed on March eleven could decline, but this doesn't mean a sharp drop to recent lows is off the table.
If the toll pulls below $9,000, the next support is at the $eight,900–$8,700 zone, and if this level fails to hold, the toll is close to dropping beneath the ascending trendline to revisit the $8,300–$eight,100 lows seen on March 9–March 11.
For the short term, traders should picket trading book, as an increment in sell book is likely to be followed by a revisit to the $9,200–$nine,150 area.
On the other mitt, increasing purchasing volume could signal that an impending surge volition help the cost break out of the pennant and above the resistance at $9,400.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading movement involves chance. You should conduct your own inquiry when making a decision.
Source: https://cointelegraph.com/news/2-key-metrics-suggest-bitcoin-price-is-back-on-the-path-to-10-000
Posted by: fierropornat.blogspot.com
0 Response to "Two Key Metrics Suggest Bitcoin Price Is Back on the Path to $10,000"
Post a Comment