Bitcoin has broken the long-held critical resistance level at $10,000. The top cryptocurrency seems to be on a bull rampage which may eventually land it some more gains after days of crawling below the $9,500 level.
As we expect more in the coming days, bitcoin is seen to have begun what many views as a bull rally which may set the price above the $10,000 support level for a long period of time. However, anything is still possible from here.
At the time of writing this piece, bitcoin changes hands at $10,115 after gaining 6% since 24 hours ago. Its market capitalization has grown also to $186.07 billion amid a considerable $37.93 billion 24 hours trading volume. Interestingly, this time, bitcoin seems to have to lead the general crypto markets while altcoins share gains alongside bitcoins.
Monday, June 1 21:34 hours UTC, the price of bitcoin spiked up consistently until it temporarily peaked at $10,185. The eating phase was achieved early on June 2, 00:49 hours UTC.
Amid struggles to overcome the resistance at $10,200, the bulls conceded a little defeat as prices fell slightly downward. At the moment, BTC is looking to overcome the resistance at $10,500 again.
BTC/USD Technical Analysis
Prices seem contained between a rising wedge pattern which keeps the bulls in control. The lower limit of the wedge is capped between $8,800 and $10,000 of a rising support level. In the event that the bulls take over the markets, it is unlikely that prices will fall below the $9,600 level for a long time.
BTC printed a bullish engulfing candle around the $9,600 level, signalling a potentially successful bullish movement. As the bulls made this ride to the top, prices made a little pullback towards $10,100 (1.68 Fibonacci retracement level). This also confirms that the bears are acting against prices beyond the upper rising resistance.
The upper limit is capped between $9,500 and $10,500 of a rising resistance range. In the short term, prices will consecutively test the highest point of resistance at $10,500 for a breakout.
If the bulls succeed, we may see bitcoin beyond $10,500 in the coming days. Otherwise, prices may consolidate within the wedge for a longer period, stabilizing the price between $10,000 and $10,500.