- The BTC/USD market is showing signs of decreased volatility
- Prices may remain bound between $9,790 and $9,850 in the short term
The price of bitcoin is back up again after it dipped suddenly on June 3 to the sub #9,400 level. Overcoming a minor resistance at $9,500, the top cryptocurrency is now moving towards the $10,000 mark again.
However, there’s a major stumbling block at the $9,800 level where the price of bitcoin appears to have been roaming for about 24 hours now.
Bitcoin is now trading at $9,793 after gaining just about 2% since yesterday, June 4. On the bright side, we expect bitcoin to shoot through the $9,800 level and test the resistance at $10,000 in a couple of days.
Bitcoin’s market capitalization is hovering around $180 billion and over $25 billion 1-day trading volume has been recorded.
Although the trend is overly bullish at the moment, the next level of major resistance lies at $9,800. Beyond this, it’s all up to the buyers to determine how quickly we ride to $10,000.
In the meanwhile, the BTC/USD pair is yet to clear the remnants of sell orders placed on exchanges. Therefore, we may see a bull candle with a little wick to the upside by the close of today’s trading day.
BTC/USD Technical Analysis
On the 4-hour chart below, BTC/USD is testing the support level at $9,727 (38.2% Fibonacci retracement level). Lower prices are highly probable in the short term provided that the bear markets will linger a while. However, price volatility remains within close limits.
This means the 0.5 fib level to the upside is not far from the present price point. In case the bulls find support at $9,727, markets may move upwards from there to overcome the barrier at $9,800.
Amid this high uncertainty, the immediate previous Doji candle closed bullish above the M9. This is an indication of market indecisiveness but the bulls are still in control.
In the event that a breakout occurs above 0.5 Fib level, the RSI may reverse to trend above 50.0 level. At this level, the price of BTC maybe somewhere near $9,900.
Presently, the Resistance Strength Indicator has crossed the mid-line and is approaching the oversold condition. This is not good for the bulls in the short term. A continuation in this path is highly destructive to short term future gains.
Next support level: $9,727
Next Resistance Level: $9,849