Bitcoin Price Analysis: BTC/USD flight back to $10,000 now at the threshold

Spot rate: $6,608

Relative change: -163

Percentage change: -2.43

Trend: Bearish

Volatility: Expanding

BTC/USD daily chart

Bitcoin price is just a month away from the 4-year reward halving event. Reduced supply coupled with a technical breakout due to the crash in March to levels under $4,000 are the perfect ingredients for a rally above $10,000 and towards the all-time high at $20,000.

On the other hand, Galaxy Digital CEO, Michael Novogratz believes that as gold price soars towards the yearly highs, Bitcoin price is bound to follow. He also said that the next few months will be very volatile for Bitcoin but 2020 is still the year for BTC.

At the time of writing, Bitcoin price is trading at $6,608. The upside is capped at $6,800 (initial resistance) while $7,000 (tested twice) is the critical level. BTC/USD is likely to make a ‘necessary” dive to $6,000; a move that would create fresh demand, encouraging more buyers to join the market, in turn, contributing to the expected rally towards $10,000.

Support one: $6,401 – Fibonacci 23.6% one-week

Support two: $5,991 – SMA 200 1-hour, SMA 50 4-hour and the Fibonacci 38.2% one-week.

Resistance one: $6,743 – SMA 50 15-minutes, Bollinger Band 1-hour Middle and SMA five 4-hour.

Resistance two: $7,016 – Previous week high and pivot point one-day resistance one.