The price of bitcoin once again overcomes a major hurdle at the sub $9k area. Crossing the resistance at that level, the bulls seem to have taken charge, and market sentiments now lean towards a bullish bias in the short-term.
Just like Ethereum hanged above $190 on Tuesday, May 13, 2020, 05:44 +0100 UTC the price of BTC began a bullish momentum and within a couple of hours, the top cryptocurrency has broken the major resistance previously set at the $9k level.
As the price waved back to test the area again, the broken resistance later acted as a support level around 08:45 hours UTC, further confirming that BTC may have set sail for greater heights.
At 09:40 hours UTC, BTC was changing hands at $9,720 as analysis points to further successful bull movement in the short term. This inbound movement promises to push BTC to the sub $10,000 level.
BTC 1-Hour Price Chart
On the 1 hour chart, the relative strength indicator (RSI) line seems to navigate towards the 68.00 mark.
This clearly indicates that though the bulls may have taken charge, they may be in control for only a short time before the bears gear up too.
As price the of BTC approaches the overbought condition, there is an inbound corresponding period of sell-off when the price is expected to make a little correction before continuing its original bull run.
BTC Daily Price Chart
BTC printed a shooting star candle on the daily timeframe. The RSI remains in the overbought condition while only moving sideways for several hours.
Yesterday, Bitcoin failed to press towards the higher zone and this may turn the market’s movement towards the low end of the aforementioned trading zone.
Further, a close below this level could send BTC/USD even lower towards $6.540. Having noted that, the weekly support level underlined on the chart (zoomed in) should be monitored.
On the other hand, a close above the high end of the zone points to a stronger bullish momentum and this may instigate a rally towards $10.507.
If BTC closes above that level, the price could extend the rally towards $12,320. In the event that the latter occurs, the weekly resistance area and levels marked on the chart should be watched along the way.