Bitcoin market update: BTC/USD beats expectations to settle above $10,400

Bitcoin ballistic recovery on Monday came by surprise to many. Recovery had been in the offing from last week’s low at $9,315 but many expected Bitcoin ascend to highs above $10,500 so soon. However, considering it is Bitcoin, the price action is not only justifiable it is also acceptable.

Looking at the hourly chart for BTC/USD trading pair we can spot an effortless price action after the short-term 50 Simple Moving Average (SMA) double-crossed above the longer-term 100 SMA. This paved the way for a staggering move past the descending trendline support allowing the buyers to ferociously attack $9,600 and $9,800 resistances.

There was a struggle to sustain Bitcoin above $9,800 although the buyers finally managed to unleash their inner power sending Bitcoin majestically above $10,000. The eye-opening move encouraged more buying entries as BTC/USD bravely faced the selling pressure at $10,200 and $10,400 respectively.

A final leg up propelled Bitcoin past $10,500 but the diminishing buying pressure awoke the bears who have been keen on limiting further gains. At present, Bitcoin is holding ground above $10,400; precisely at $10,401.

Technical levels are still positive especially with the Relative Strength Index (RSI) defying the overbought conditions to stay above 70. The Moving Average Convergence Divergence (MACD) is sitting at ease in the positive region proposing that bullish control is not over yet. If the slightly bullish divergence above +157.447 continues, Bitcoin could gain ground above $10,400 and focus on $10,500 as well.

BTC/USD 1-hour chart